The_AT US_NP1 sets_VVZ its_APPGE compass_NN1 on_II two_MC trading_NN1 oceans_NN2 Notebook_NN1 ._. 
By_II Edited_JJ by_II Alex_NP1 Brummer_NP1 CANBERRA_NP1 may_VM seem_VVI an_AT1 awful_JJ long_JJ way_NN1 from_II exchanges_NN2 on_II the_AT floor_NN1 of_IO the_AT House_NN1 of_IO Commons_NP over_NN1 the_AT European_JJ Monetary_JJ System_NN1 ._. 
But_CCB were_VBDR it_PPH1 not_XX for_IF the_AT perceived_JJ economic_JJ might_NN1 of_IO a_AT1 more_RGR unified_JJ Economic_JJ Community_NN1 ,_, the_AT dozen_NNO or_CC so_RR nations_NN2 of_IO the_AT Pacific_NP1 Rim_NN1 ,_, who_PNQS have_VH0 been_VBN meeting_VVG in_II Australia_NP1 ,_, might_VM not_XX have_VHI bothered_VVN ._. 
The_AT first_MD ,_, albeit_CS tenative_JJ ,_, steps_NN2 towards_II forming_VVG a_AT1 new_JJ Pacific-based_JJ economic_JJ union_NN1 display_VV0 an_AT1 astute_JJ awareness_NN1 of_IO the_AT way_NN1 events_NN2 are_VBR moving_VVG within_II Europe_NP1 :_: movements_NN2 with_IW which_DDQ Number_NN1 10_MC has_VHZ yet_RR to_TO come_VVI to_II grips_NN2 ._. 
Not_XX so_RG long_RR ago_RA it_PPH1 seemed_VVD as_CS21 if_CS22 the_AT world_NN1 was_VBDZ to_TO divide_VVI into_II three_MC main_JJ trading_NN1 blocks_NN2 :_: the_AT EC_NP1 based_VVD around_II the_AT West_NP1 German_JJ economy_NN1 ;_; a_AT1 Northern_JJ American_JJ block_NN1 based_VVN around_II the_AT US-Canadian_JJ free_JJ trade_NN1 area_NN1 ,_, and_CC a_AT1 Pacific_NP1 unit_NN1 incorporating_VVG the_AT Asian_JJ tigers_NN2 with_IW Japan_NP1 and_CC the_AT yen_NN at_II the_AT centre_NN1 ._. 
But_CCB the_AT Metternich-like_JJ skills_NN2 of_IO the_AT US_NP1 Secretary_NN1 of_IO State_NN1 ,_, Mr_NNB James_NP1 Baker_NP1 ,_, are_VBR ensuring_VVG that_CST America_NP1 maintains_VVZ a_AT1 strong_JJ stake_NN1 in_II each_DD1 forum_NN1 ._. 
It_PPH1 firstly_RR boldly_RR asked_VVD for_IF a_AT1 seat_NN1 at_II the_AT top_JJ table_NN1 at_II the_AT European_JJ Community_NN1 :_: a_AT1 suggestion_NN1 rudely_RR rebuffed_VVN ._. 
The_AT US_NP1 has_VHZ talked_VVN of_IO a_AT1 genuine_JJ North_NP1 American_JJ free_JJ trade_NN1 zone_NN1 incorporating_VVG the_AT US_NP1 ,_, Canada_NP1 and_CC Mexico_NP1 which_DDQ would_VM have_VHI the_AT best_JJT of_IO all_DB worlds_NN2 with_IW high-technology_JJ skills_NN2 and_CC a_AT1 cheap_JJ labour_NN1 force_NN1 south_ND1 of_IO the_AT Rio_NP1 Grande_NP1 ._. 
Now_RT it_PPH1 is_VBZ making_VVG a_AT1 third_MD bid_NN1 for_IF influence_NN1 ._. 
It_PPH1 has_VHZ turned_VVN up_RP in_II Canberra_NP1 with_IW Japan_NP1 to_TO develop_VVI Asia_NP1 Pacific_NP1 Economic_JJ Co-operation_NN1 (_( APEC_NP1 )_) and_CC a_AT1 new_JJ 12-nation_JJ organisation_NN1 which_DDQ will_VM mimic_VVI the_AT role_NN1 of_IO the_AT Organisation_NN1 for_IF Economic_JJ Co-operation_NN1 and_CC Development_NN1 in_II Europe_NP1 ._. 
Preliminary_JJ steps_NN2 taken_VVN to_TO conduct_VVI studies_NN2 on_II trade_NN1 ,_, technology_NN1 and_CC investment_NN1 flows_VVZ in_II the_AT region_NN1 may_VM seem_VVI insignificant_JJ ._. 
But_CCB Mr_NNB Baker_NP1 plainly_RR views_VVZ it_PPH1 as_RG otherwise_RR ._. 
He_PPHS1 noted_VVD that_CST the_AT Canberra_NP1 meeting_NN1 '_GE is_VBZ the_AT start_NN1 of_IO something_PN1 which_DDQ could_VM grow_VVI into_II a_AT1 very_RG significant_JJ development_NN1 not_XX only_RR for_IF the_AT region_NN1 but_CCB for_IF the_AT global_JJ economy_NN1 ._. 
'_" If_CSW the_AT more_RGR economically_RR puny_JJ ASEAN_JJ countries_NN2 (_( Indonesia_NP1 ,_, Malaysia_NP1 ,_, Singapore_NP1 ,_, Brunei_NP1 ,_, Thailand_NP1 and_CC the_AT Philippines_NP2 )_) were_VBDR to_TO bury_VVI their_APPGE reservations_NN2 ,_, then_RT the_AT high_JJ growth_NN1 from_II other_JJ partners_NN2 ,_, including_II such_DA tigers_NN2 as_CSA Thailand_NP1 and_CC South_ND1 Korea_NP1 alongside_II the_AT more_RGR mature_JJ economies_NN2 of_IO Japan_NP1 and_CC Australia_NP1 ,_, could_VM mean_VVI a_AT1 dynamic_JJ coalition_NN1 ._. 
It_PPH1 would_VM then_RT be_VBI up_II21 to_II22 the_AT US_NP1 and_CC Canada_NP1 to_TO decide_VVI whether_CSW they_PPHS2 want_VV0 to_TO face_VVI towards_II the_AT Atlantic_NP1 or_CC Pacific_NP1 or_CC be_VBI caught_VVN between_II two_MC great_JJ trading_NN1 oceans_NN2 ._. 
Heading_VVG for_IF default_NN1 ._. 
THE_AT QUESTION_NN1 of_IO just_RR who_PNQS would_VM even_RR want_VVI to_TO be_VBI a_AT1 partner_NN1 with_IW the_AT US_NP1 was_VBDZ underlined_VVN last_MD night_NNT1 as_II the_AT American_JJ Administration_NN1 headed_VVN for_IF default_NN1 for_IF the_AT first_MD time_NNT1 in_II its_APPGE history_NN1 ._. 
Congress_NN1 was_VBDZ frantically_RR trying_VVG to_TO complete_VVI a_AT1 bill_NN1 raising_VVG the_AT federal_JJ debt_NN1 ceiling_NN1 in_II time_NNT1 for_IF President_NNB Bush_NP1 to_TO sign_VVI today_RT ._. 
Leaders_NN2 on_II Capitol_NP1 Hill_NP1 virtually_RR put_VV0 all_DB other_JJ business_NN1 on_II hold_NN1 as_CSA it_PPH1 sought_VVD to_TO hammer_VVI out_RP a_AT1 debt_NN1 ceiling_NN1 increase_NN1 ._. 
The_AT Treasury_NN1 Secretary_NN1 Nicholas_NP1 Brady_NP1 ,_, a_AT1 level_JJ headed_JJ figure_NN1 ,_, warned_VVD that_CST the_AT imbroglio_NN1 may_VM lead_VVI to_II higher_JJR interest_NN1 costs_VVZ for_IF the_AT taxpayer_NN1 ._. 
What_DDQ should_VM have_VHI been_VBN a_AT1 routine_NN1 exercise_NN1 in_II extending_VVG the_AT Government_NN1 's_GE borrowing_NN1 power_NN1 to_II $3.1_NNU thousand_NNO billion_NNO became_VVD bogged_VVN down_RP in_II wrangling_NN1 over_II legislative_JJ initiatives_NN2 lawmakers_NN2 wanted_VVD to_TO attach_VVI to_II the_AT bill_NN1 ._. 
As_II a_AT1 result_NN1 of_IO the_AT stalemate_NN1 ,_, the_AT Treasury_NN1 has_VHZ been_VBN forced_VVN to_TO postpone_VVI $40billion_NNU in_II debt_NN1 auctions_VVZ this_DD1 week_NNT1 ._. 
Lack_NN1 of_IO congressional_JJ action_NN1 also_RR forced_VVN the_AT Treasury_NN1 to_TO suspend_VVI new_JJ sales_NN of_IO US_NP1 savings_NN2 bonds_NN2 and_CC of_IO special_JJ securities_NN2 for_IF state_NN1 and_CC local_JJ governments_NN2 ._. 
This_DD1 market_NN1 sensitive_JJ dispute_NN1 has_VHZ taken_VVN place_NN1 as_CSA President_NNB Bush_NP1 and_CC Congress_NN1 continued_VVD to_TO spar_VVI on_II a_AT1 primary_JJ cause_NN1 for_IF government_NN1 borrowing_VVG the_AT budget_NN1 deficit_NN1 ._. 
At_II a_AT1 press_NN1 conference_NN1 to_TO mark_VVI his_APPGE election_NN1 victory_NN1 a_AT1 year_NNT1 ago_RA ,_, Mr_NNB Bush_NP1 threatened_VVD to_TO veto_VVI the_AT budget_NN1 unless_CS it_PPH1 contained_VVD real_JJ cuts_NN2 ._. 
Otherwise_RR Congress_NN1 would_VM have_VHI to_TO face_VVI the_AT consequences_NN2 of_IO automatic_JJ across-the-board_NN1 cuts_VVZ under_II the_AT Gramm-Rudman-Hollings_NP1 budget_NN1 deficit_NN1 reduction_NN1 law_NN1 ._. 
America_NP1 may_VM have_VHI changed_VVN Presidents_NN2 a_AT1 year_NNT1 ago_RA ,_, but_CCB the_AT fiscal_JJ thicket_NN1 remains_VVZ as_RG inpenetrable_JJ as_CSA ever_RR ._. 
Political_JJ expediency_NN1 ._. 
NO_RR21 LONGER_RR22 can_VV0 the_AT Government_NN1 disguise_VVI the_AT crisis_NN1 surrounding_JJ electricity_NN1 privatisation_NN1 ._. 
Ministers_NN2 have_VH0 already_RR had_VHN to_TO pull_VVI Britain_NP1 's_GE fleet_NN1 of_IO Magnox_NN1 reactors_NN2 out_II21 of_II22 the_AT float_NN1 and_CC delay_VV0 the_AT sell-off_NN1 date_NN1 by_II up_RG21 to_RG22 six_MC months_NNT2 ._. 
But_CCB it_PPH1 has_VHZ now_RT become_VV0 clear_JJ that_CST further_JJR drastic_JJ amendments_NN2 are_VBR needed_VVN to_II flotation_NN1 plans_NN2 ._. 
After_CS months_NNT2 of_IO turning_VVG deaf_JJ ears_NN2 to_II warnings_NN2 by_II the_AT City_NN1 and_CC industry_NN1 ,_, the_AT Department_NN1 of_IO Energy_NN1 has_VHZ at_RR21 last_RR22 conceded_VVN that_CST nuclear_JJ plant_NN1 can_VM not_XX be_VBI included_VVN in_II the_AT share_NN1 float_NN1 without_IW state_NN1 support_NN1 ._. 
This_DD1 leaves_VVZ the_AT Energy_NN1 Secretary_NN1 ,_, Mr_NNB John_NP1 Wakeham_NP1 ,_, with_IW two_MC options_NN2 :_: he_PPHS1 can_VM either_RR agree_VVI to_TO underwrite_VVI any_DD cost_NN1 escalations_NN2 in_II nuclear_JJ handling_NN1 costs_VVZ after_II privatisation_NN1 ,_, or_CC he_PPHS1 can_VM swallow_VVI his_APPGE pride_NN1 ,_, and_CC pull_VVI all_DB nuclear_JJ plant_NN1 out_II21 of_II22 the_AT impending_JJ sale_NN1 ._. 
Whatever_DDQV the_AT outcome_NN1 ,_, the_AT Government_NN1 's_GE willingness_NN1 to_TO continue_VVI pushing_VVG through_II the_AT float_NN1 during_II this_DD1 Parliament_NN1 shows_VVZ how_RRQ ministers_NN2 are_VBR prepared_VVN to_TO put_VVI political_JJ expediency_NN1 before_II the_AT interests_NN2 of_IO the_AT industry_NN1 ._. 
For_IF the_AT nuclear_JJ element_NN1 in_II electricity_NN1 privatisation_NN1 is_VBZ the_AT coping_NN1 stone_NN1 on_II which_DDQ the_AT flotation_NN1 plans_NN2 are_VBR based_VVN ._. 
National_JJ Power_NN1 was_VBDZ given_VVN 70_MC per_NNU21 cent_NNU22 of_IO the_AT CEGB_NP1 's_GE generating_JJ capacity_NN1 in_BCL21 order_BCL22 to_TO give_VVI it_PPH1 an_AT1 economic_JJ mix_NN1 of_IO power_NN1 ._. 
The_AT other_JJ 30_MC per_NNU21 cent_NNU22 is_VBZ to_TO be_VBI operated_VVN by_II PowerGen_NP1 ,_, the_AT other_JJ CEGB_NP1 successor_NN1 company_NN1 ._. 
Take_VV0 away_RL or_CC subsidise_VV0 all_DB nuclear_JJ power_NN1 stations_NN2 and_CC you_PPY lose_VV0 the_AT commercial_JJ logic_NN1 of_IO the_AT privatisation_NN1 plans_NN2 ._. 
Electricity_NN1 privatisation_NN1 needs_VVZ to_TO go_VVI back_RP to_II the_AT drawing_NN1 board_NN1 ._. 
At_II the_AT very_RG least_RRT ,_, the_AT CEGB_NP1 should_VM be_VBI divided_VVN into_II a_AT1 wider_JJR range_NN1 of_IO generating_JJ companies_NN2 to_TO stimulate_VVI competition_NN1 ._. 
Is_VBZ it_PPH1 worth_II sacrificing_VVG the_AT long-term_JJ future_NN1 of_IO Britain_NP1 's_GE biggest_JJT state-owned_JJ industry_NN1 to_TO make_VVI political_JJ capital_NN1 in_II the_AT run-up_NN1 to_II the_AT next_MD election_NN1 ?_? 
Hanson_NP1 puts_VVZ crucial_JJ 21m_NNU Morgan_NP1 stake_VV0 up_RP for_IF auction_NN1 ._. 
By_II Ben_NP1 Laurance_NP1 APIVOTAL_NP1 21million_FO stake_VV0 in_II besieged_JJ merchant_NN1 bank_NN1 Morgan_NP1 Grenfell_NP1 was_VBDZ yesterday_RT put_VV0 up_RP for_IF auction_NN1 by_II Hanson_NP1 as_CSA talks_NN2 which_DDQ could_VM have_VHI heralded_VVN a_AT1 Morgan-BZW_NP1 merger_NN1 broke_VVD down_RP ._. 
Hanson_NP1 revealed_VVD that_CST it_PPH1 had_VHD sold_VVN 100,000_MC shares_NN2 in_II Morgan_NP1 but_CCB told_VVD investors_NN2 it_PPH1 still_RR owns_VVZ 4.4million_FO shares_NN2 in_II the_AT merchant_NN1 bank_NN1 ._. 
The_AT announcement_NN1 was_VBDZ unnecessary_JJ under_II City_NN1 disclosure_NN1 rules_NN2 and_CC bank-watchers_NN2 immediately_RR interpreted_VVD the_AT Hanson_NP1 statement_NN1 as_II an_AT1 invitation_NN1 to_II anyone_PN1 with_IW designs_NN2 on_II Morgan_NP1 to_TO bid_VVI for_IF the_AT stake_NN1 ._. 
Morgan_NP1 Grenfell_NP1 ,_, once_CS the_AT high-flyer_NN1 of_IO British_JJ merchant_NN1 banking_NN1 ,_, now_RT finds_VVZ itself_PPX1 with_IW few_DA2 British_JJ allies_NN2 ._. 
The_AT Hanson_NP1 stake_NN1 is_VBZ up_RP for_IF sale_NN1 ._. 
Banque_FW Indosuez_FW of_IO France_NP1 already_RR owns_VVZ more_DAR than_CSN 10_MC per_NNU21 cent_NNU22 and_CC wants_VVZ to_TO buy_VVI a_AT1 further_JJR 9.8_MC per_NNU21 cent_NNU22 ._. 
And_CC with_IW the_AT ending_NN1 of_IO merger_NN1 talks_NN2 with_IW BZW_NP1 ,_, it_PPH1 is_VBZ hard_JJ to_TO see_VVI how_RRQ Morgan_NP1 Grenfell_NP1 can_VM preserve_VVI its_APPGE independence_NN1 without_IW falling_VVG into_II the_AT hands_NN2 of_IO an_AT1 overseas_JJ concern_NN1 ._. 
A_AT1 possible_JJ bid_NN1 could_VM come_VVI from_II West_NP1 Germany_NP1 or_CC Japan_NP1 ._. 
BZW_NP1 's_GE decision_NN1 to_TO break_VVI off_RP talks_NN2 came_VVD after_II a_AT1 top-level_JJ meeting_NN1 between_II executives_NN2 at_II the_AT investment_NN1 bank_NN1 and_CC Morgan_NP1 yesterday_RT ._. 
Discussions_NN2 had_VHD been_VBN taking_VVG place_NN1 since_CS the_AT middle_NN1 of_IO last_MD week_NNT1 ._. 
Morgan_NP1 has_VHZ been_VBN looking_VVG for_IF a_AT1 white_JJ knight_NN1 for_IF the_AT last_MD two_MC weeks_NNT2 since_CS insurance_NN1 broker_NN1 Willis_NP1 Faber_NP1 announced_VVD it_PPH1 was_VBDZ selling_VVG its_APPGE 20_MC per_NNU21 cent_NNU22 stake_NN1 in_II the_AT merchant_NN1 bank_NN1 to_II Banque_FW Indosuez_FW ,_, part_NN1 of_IO Compagnie_NP1 Financiere_NP1 de_NP1 Suez_NP1 ._. 
Willis_NP1 Faber_NP1 is_VBZ holding_VVG back_RP almost_RR half_DB the_AT shares_NN2 until_CS it_PPH1 receives_VVZ shareholder_NN1 backing_VVG for_IF the_AT sale_NN1 at_II a_AT1 meeting_NN1 on_II November_NPM1 29_MC ._. 
If_CS someone_PN1 wants_VVZ to_TO make_VVI a_AT1 move_NN1 on_II Morgan_NP1 ,_, the_AT would-be_JJ predator_NN1 will_VM have_VHI to_TO move_VVI before_II the_AT Willis_NP1 Faber_NP1 meeting_NN1 ._. 
Shares_NN2 in_II Morgan_NP1 edged_VVD up_RP 1p_NNU to_II 469p_NNU last_MD night_NNT1 ._. 
Tie_NN1 Rack_NN1 looks_VVZ rather_RR out_II21 of_II22 fashion_NN1 as_CSA sales_NN slow_VV0 down_RP Outlook_NN1 ._. 
By_II Roger_NP1 Cowe_NP1 THE_AT good_JJ news_NN1 is_VBZ that_DD1 Tie_NN1 Rack_NN1 is_VBZ in_II better_JJR shape_NN1 than_CSN Sock_NN1 Shop_NN1 ._. 
The_AT bad_JJ news_NN1 is_VBZ revealed_VVN partly_RR by_II the_AT results_NN2 for_IF the_AT first_MD half_DB year_NNT1 and_CC partly_RR by_II the_AT company_NN1 's_GE prediction_NN1 that_CST its_APPGE borrowings_NN2 will_VM only_RR be_VBI down_RP to_II half_DB shareholders_NN2 '_GE funds_NN2 even_RR at_II the_AT end-of-year_JJ low_JJ point_NN1 after_II the_AT Christmas_NNT1 rush_NN1 ._. 
The_AT hole-in-the-wall_JJ tie_NN1 and_CC scarf_NN1 retailer_NN1 is_VBZ going_VVG through_II a_AT1 sticky_JJ patch_NN1 in_II its_APPGE drive_NN1 to_TO adorn_VVI the_AT world_NN1 's_GE necks_NN2 ._. 
That_DD1 is_VBZ due_JJ partly_RR to_II the_AT sticky_JJ summer_NNT1 which_DDQ saw_VVD Englishmen_NN2 dare_VVI to_TO walk_VVI open-necked_JJ in_II daylight_NN1 ._. 
Also_RR partly_RR to_II the_AT time-honoured_JJ practice_NN1 of_IO coming_VVG unstuck_JJ in_II the_AT United_NP1 States_NP1 ._. 
And_CC partly_RR to_II the_AT general_JJ malaise_NN1 which_DDQ afflicts_VVZ the_AT entire_JJ retail_JJ sector_NN1 (_( except_II21 for_II22 Marks_NP1 and_CC Spencer_NP1 ,_, of_RR21 course_RR22 )_) ._. 
Tie_NN1 Rack_NN1 is_VBZ the_AT ultimate_JJ boom_NN1 stock_NN1 of_IO the_AT 1980s_MC2 ._. 
An_AT1 entrepreneurial_JJ idea_NN1 which_DDQ took_VVD off_RP ._. 
A_AT1 company_NN1 launched_VVN on_II the_AT stock_NN1 market_NN1 almost_RR exactly_RR at_II the_AT top_NN1 of_IO the_AT market_NN1 in_II the_AT summer_NNT1 of_IO 1987_MC and_CC which_DDQ has_VHZ gone_VVN steadily_RR down_RP ever_RR since_CS ,_, as_CSA the_AT graph_NN1 illustrates_VVZ ._. 
And_CC one_PN1 which_DDQ found_VVD that_CST its_APPGE ambitious_JJ expansion_NN1 plans_NN2 were_VBDR rather_RG more_RGR difficult_JJ in_II practice_NN1 than_CSN on_II paper_NN1 ._. 
Details_NN2 are_VBR sparse_JJ ,_, with_IW the_AT company_NN1 not_XX even_RR revealing_JJ interest_NN1 costs_NN2 (_( which_DDQ must_VM be_VBI enormous_JJ ,_, especially_RR in_II this_DD1 slow_JJ first_MD half_DB year_NNT1 )_) ._. 
But_CCB the_AT picture_NN1 is_VBZ one_MC1 of_IO sluggish_JJ sales_NN and_CC high_JJ overheads_NN2 ._. 
The_AT result_NN1 is_VBZ a_AT1 warning_NN1 from_II chairman_NN1 Roy_NP1 Bishko_NP1 that_DD1 full_JJ year_NNT1 results_NN2 will_VM be_VBI '_GE significantly_RR lower_JJR '_GE ._. 
There_EX are_VBR now_RT 242_MC shops_NN2 ,_, 31_MC more_DAR than_CSN at_II the_AT start_NN1 of_IO the_AT year_NNT1 ._. 
That_DD1 increase_NN1 accounts_VVZ for_IF the_AT large_JJ sales_NN increase_VV0 ,_, exaggerated_VVN by_II the_AT initial_JJ stocks_NN2 sold_VVN to_II franchises_NN2 ._. 
Comparable_JJ sales_NN in_II shops_NN2 which_DDQ were_VBDR open_JJ last_MD year_NNT1 were_VBDR in_II fact_NN1 down_RP ._. 
In_II the_AT UK_NP1 ,_, the_AT company_NN1 says_VVZ that_CST was_VBDZ because_II21 of_II22 the_AT hot_JJ weather_NN1 ,_, and_CC the_AT train_NN1 dispute_NN1 which_DDQ clearly_RR affected_VVN traffic_NN1 past_II their_APPGE many_DA2 shops_NN2 in_II railway_NN1 stations_NN2 ._. 
Tie_NN1 Rack_NN1 estimates_VVZ that_CST those_DD2 factors_NN2 cost_VV0 it_PPH1 sales_NN of_IO between_II 400,000_MC and_CC 500,000_MC ._. 
But_CCB things_NN2 have_VH0 now_RT improved_VVN and_CC sales_NN in_II comparable_JJ shops_NN2 are_VBR currently_RR ahead_II21 of_II22 last_MD year_NNT1 ,_, if_CS only_RR by_II a_AT1 neck_NN1 ._. 
The_AT US_NP1 ,_, where_CS Tie_NN1 Rack_NN1 now_RT has_VHZ 41_MC shops_NN2 ,_, has_VHZ also_RR been_VBN responsible_JJ for_IF the_AT first_MD half_NN1 loss_NN1 ._. 
About_RG 30_MC of_IO the_AT shops_NN2 are_VBR now_RT profitable_JJ ,_, according_II21 to_II22 Mr_NNB Bishko_NP1 ,_, but_CCB not_XX profitable_JJ enough_RR to_TO cover_VVI overheads_NN2 which_DDQ are_VBR rather_RG higher_JJR than_CSN he_PPHS1 had_VHD anticipated_VVN ._. 
Mr_NNB Bishko_NP1 says_VVZ sales_NN volumes_NN2 need_VV0 to_TO rise_VVI by_II a_AT1 fifth_MD or_CC a_AT1 quarter_NN1 for_IF the_AT US_NP1 operation_NN1 to_TO break_VVI even_RR ,_, and_CC more_DAR stores_NN2 will_VM be_VBI needed_VVN before_CS it_PPH1 makes_VVZ a_AT1 satisfactory_JJ profit_NN1 ._. 
He_PPHS1 is_VBZ optimistic_JJ ,_, naturally_RR ,_, on_II the_AT basis_NN1 of_IO sales_NN growth_NN1 in_II the_AT earlier_JJR stores_NN2 ,_, but_CCB there_EX will_VM be_VBI only_RR one_MC1 new_JJ store_NN1 in_II the_AT US_NP1 this_DD1 year_NNT1 ._. 
Indeed_RR the_AT pace_NN1 of_IO expansion_NN1 has_VHZ slowed_VVN to_II a_AT1 crawl_NN1 everywhere_RL ,_, even_CS21 though_CS22 much_DA1 of_IO that_DD1 expansion_NN1 in_II the_AT past_NN1 has_VHZ been_VBN financed_VVN by_II franchising_VVG ._. 
The_AT vast_JJ majority_NN1 of_IO the_AT UK_NP1 shops_NN2 are_VBR franchised_VVN ,_, as_CSA are_VBR the_AT eight_MC in_II Scandinavia_NP1 and_CC the_AT seven_MC in_II Eire_NP1 ._. 
Four_MC in_II Holland_NP1 and_CC 13_MC in_II France_NP1 have_VH0 been_VBN developed_VVN with_IW local_JJ partners_NN2 ,_, leaving_VVG 14_MC Australian_JJ and_CC 23_MC Canadian_JJ shops_NN2 owned_VVN by_II the_AT group_NN1 as_II31 well_II32 as_II33 the_AT 41_MC in_II the_AT US_NP1 ._. 
In_II retrospect_NN1 the_AT pace_NN1 of_IO international_JJ expansion_NN1 may_VM seem_VVI extravagant_JJ ,_, especially_RR since_CS the_AT franchising_NN1 route_NN1 which_DDQ has_VHZ eased_VVN the_AT financial_JJ pain_NN1 of_IO UK_NP1 expansion_NN1 was_VBDZ not_XX thought_VVN practicable_JJ abroad_RL ._. 
But_CCB that_DD1 is_VBZ all_DB part_NN1 of_IO the_AT prescription_NN1 for_IF these_DD2 go-go_JJ (_( and_CC now_RT stop-stop_JJ )_) 1980s_MC2 companies_NN2 ._. 
Will_NP1 Tie_NN1 Rack_NN1 come_VVN to_II a_AT1 full_JJ stop_NN1 ?_? 
Probably_RR not_XX ,_, even_CS21 though_CS22 the_AT next_MD couple_NN1 of_IO years_NNT2 will_VM be_VBI tough_JJ and_CC even_CS21 though_CS22 Mr_NNB Bishko_NP1 has_VHZ a_AT1 habit_NN1 of_IO losing_VVG senior_JJ managers_NN2 with_IW an_AT1 abandon_NN1 bordering_VVG on_II carelessness_NN1 ._. 
Even_RR at_II 19.99_MC for_IF a_AT1 top-of-the-range_JJ silk_NN1 masterpiece_NN1 ,_, ties_NN2 are_VBR not_XX exactly_RR big_JJ ticket_NN1 items_NN2 ._. 
And_CC while_CS (_( at_RR21 least_RR22 in_II my_APPGE personal_JJ experience_NN1 )_) men_NN2 are_VBR more_RGR likely_JJ than_CSN women_NN2 to_TO stop_VVI buying_VVG such_DA adornments_NN2 when_CS times_NNT2 are_VBR tough_JJ ,_, gravy_NN1 and_CC similar_JJ substances_NN2 will_VM keep_VVI going_VVG astray_RR ,_, creating_VVG a_AT1 steady_JJ replacement_NN1 market_NN1 ._. 
It_PPH1 would_VM be_VBI interesting_JJ to_TO know_VVI how_RRQ Mr_NNB Bishko_NP1 's_GE shareholders_NN2 feel_VV0 about_II the_AT future_NN1 ._. 
But_CCB since_CS half_DB the_AT shares_NN2 are_VBR owned_VVN by_II the_AT shadowy_JJ ,_, South_ND1 African-linked_JJ Vadep_NN1 Holdings_NN2 we_PPIS2 (_( and_CC even_RR Mr_NNB Bishko_NP1 )_) are_VBR unlikely_JJ to_TO find_VVI out_RP ._. 
Although_CS with_IW no_AT dividend_NN1 increase_NN1 and_CC the_AT shares_NN2 languishing_VVG at_II just_RR 46p_NNU after_II yesterday_RT 's_GE fall_NN1 ,_, even_RR the_AT patience_NN1 of_IO anonymous_JJ South_NP1 Africans_NN2 must_VM be_VBI sorely_RR tested_VVN ._. 
Wall_NP1 Street_NNL1 hit_VVD by_II job_NN1 fears_NN2 as_CSA Shearson_NP1 cuts_VVZ 800_MC staff_NN ._. 
By_II Mary_NP1 Brasier_NP1 in_II New_NP1 York_NP1 SHEARSON_NP1 Lehman_NP1 ,_, the_AT securities_NN2 house_VV0 ,_, has_VHZ sparked_VVN fears_NN2 of_IO a_AT1 fresh_JJ wave_NN1 of_IO job_NN1 cuts_VVZ on_II Wall_NP1 Street_NNL1 with_IW a_AT1 decision_NN1 to_TO make_VVI up_RG21 to_RG22 800_MC employees_NN2 redundant_JJ ._. 
The_AT cuts_NN2 are_VBR the_AT third_MD time_NNT1 Shearson_NP1 has_VHZ laid_VVN off_II staff_NN since_CS the_AT market_NN1 crash_NN1 of_IO 1987_MC ,_, and_CC are_VBR the_AT highest_JJT on_II Wall_NP1 Street_NNL1 this_DD1 year_NNT1 ._. 
They_PPHS2 are_VBR expected_VVN to_TO fall_VVI across_II the_AT board_NN1 among_II the_AT firm_NN1 's_GE 38,500_MC employees_NN2 but_CCB will_VM be_VBI confined_VVN to_II New_NP1 York_NP1 ._. 
A_AT1 spokesman_NN1 for_IF Shearson_NP1 said_VVD UK_NP1 staff_NN would_VM not_XX be_VBI affected_VVN and_CC the_AT group_NN1 is_VBZ not_XX withdrawing_VVG from_II any_DD area_NN1 of_IO business_NN1 ._. 
Shearson_NN1 yesterday_RT blamed_VVD the_AT continued_JJ slowdown_NN1 in_II market_NN1 activity_NN1 and_CC excess_JJ capacity_NN1 for_IF the_AT redundancies_NN2 ._. 
The_AT market_NN1 plunge_NN1 on_II October_NPM1 13_MC when_RRQ the_AT Dow_NP1 Jones_NP1 index_NN1 fell_VVD 190_MC points_NN2 was_VBDZ a_AT1 factor_NN1 ,_, said_VVD spokesman_NN1 Steven_NP1 Fagan_NP1 ._. 
But_CCB Shearson_NP1 like_II other_JJ Wall_NP1 Street_NNL1 firms_NN2 has_VHZ been_VBN forced_VVN to_TO review_VVI its_APPGE payroll_NN1 by_II the_AT dearth_NN1 of_IO corporate_JJ finance_NN1 fees_NN2 on_II31 top_II32 of_II33 the_AT chronic_JJ decline_NN1 in_II market_NN1 volume_NN1 and_CC commissions_NN2 ._. 
The_AT cuts_NN2 will_VM remove_VVI another_DD1 two_MC per_NNU21 cent_NNU22 from_II the_AT payroll_NN1 following_VVG layoffs_NN2 of_IO 1200_MC last_MD year_NNT1 and_CC a_AT1 further_JJR round_II which_DDQ saw_VVD 300_MC jobs_NN2 go_VV0 ._. 
After_CS Black_JJ Monday_NPD1 ,_, large_JJ firms_NN2 like_II Shearson_NP1 have_VH0 built_VVN up_RP their_APPGE corporate_JJ finance_NN1 departments_NN2 and_CC relied_VVD increasingly_RR on_II them_PPHO2 to_TO generate_VVI earnings_NN2 ._. 
But_CCB the_AT collapse_NN1 of_IO the_AT United_JJ Airlines_NN2 bid_VV0 and_CC the_AT troubles_NN2 of_IO the_AT junk_NN1 bond_NN1 market_NN1 have_VH0 blocked_VVN new_JJ deals_NN2 ._. 
The_AT main_JJ axe_NN1 is_VBZ expected_VVN to_TO fall_VVI on_II the_AT firm_NN1 's_GE back_NN1 office_NN1 operations_NN2 and_CC among_II administrative_JJ staff_NN in_II an_AT1 effort_NN1 to_TO contain_VVI expenses_NN2 ._. 
Analysts_NN2 say_VV0 that_CST Shearson_NP1 is_VBZ paying_VVG the_AT price_NN1 for_IF overmanning_VVG during_II the_AT market_NN1 boom_NN1 which_DDQ ended_VVD in_II 1987_MC ._. 
Magnet_NN1 finance_NN1 chief_NN1 quits_VVZ ._. 
Magnet_NN1 's_GE finance_NN1 director_NN1 Albert_NP1 King_NN1 has_VHZ suddenly_RR left_VVN the_AT company_NN1 ,_, it_PPH1 was_VBDZ disclosed_VVN last_MD night_NNT1 ._. 
The_AT company_NN1 would_VM not_XX comment_VVI ._. 
The_AT troubled_JJ DIY_NN1 group_NN1 has_VHZ been_VBN in_II talks_NN2 with_IW its_APPGE bankers_NN2 arranging_VVG a_AT1 refinancing_NN1 of_IO the_AT 553million_FO loans_NN2 taken_VVN out_RP at_II the_AT time_NNT1 of_IO the_AT management_NN1 buy-out_NN1 ._. 
US_NP1 interest_NN1 rates_NN2 fall_VV0 ._. 
US_NP1 interest_NN1 rates_NN2 fell_VVD yesterday_RT as_II the_AT Federal_JJ Reserve_NN1 gave_VVD the_AT first_MD sign_NN1 that_CST it_PPH1 is_VBZ prepared_VVN to_TO ease_VVI monetary_JJ policy_NN1 ._. 
The_AT Fed_VVN 's_VBZ injection_NN1 of_IO funds_NN2 triggered_VVD a_AT1 fall_NN1 in_II rates_NN2 from_II 8_MC per_NNU21 cent_NNU22 to_II just_RR over_RG 8_MC per_NNU21 cent_NNU22 ._. 
The_AT action_NN1 sparked_VVD a_AT1 rally_NN1 in_II bond_NN1 prices_NN2 and_CC the_AT Dow_NP1 Jones_NP1 closed_VVD 14.96_MC up_RP at_II 2597.13_MC .._... 
Barclays_NP1 '_GE US_NP1 move_NN1 ._. 
Barclays_NP1 plans_VVZ to_TO sell_VVI part_NN1 of_IO its_APPGE US_NP1 finance_NN1 arm_NN1 ,_, Barclays_NP1 American_JJ Corporation_NN1 ,_, according_II21 to_II22 a_AT1 report_NN1 in_II the_AT American_JJ Banker_NN1 newspaper_NN1 ._. 
It_PPH1 said_VVD Barclays_NP1 will_VM sell_VVI part_NN1 of_IO the_AT consumer_NN1 and_CC business_NN1 finance_NN1 company_NN1 within_II the_AT next_MD few_DA2 months_NNT2 ._. 
Check_VV0 on_II 737s_MC2 ._. 
Airlines_NN2 have_VH0 been_VBN asked_VVN to_TO check_VVI new_JJ Boeing_NP1 737s_MC2 after_CS an_AT1 alert_JJ by_II the_AT US_NP1 Federal_JJ Aviation_NN1 Authority_NN1 that_CST a_AT1 bolt_NN1 may_VM have_VHI been_VBN left_VVN off_II the_AT plane_NN1 's_GE forward_JJ door_NN1 during_II production_NN1 ._. 
The_AT alert_JJ stems_NN2 from_II a_AT1 check_NN1 by_II Boeing_NP1 of_IO its_APPGE quality_NN1 control_NN1 records_NN2 and_CC covers_VVZ 18_MC planes_NN2 completed_VVN in_II the_AT last_MD two_MC months_NNT2 ._. 
Settlement_NN1 pressure_NN1 ._. 
The_AT pressure_NN1 for_IF an_AT1 insurance_NN1 market_NN1 settlement_NN1 of_IO the_AT 305_MC million_NNO losses_NN2 from_II Dick_NP1 Outhwaite_NP1 's_GE syndicates_NN2 has_VHZ intensified_VVN after_II the_AT $50million_NNU threat_NN1 of_IO legal_JJ action_NN1 against_II the_AT corporation_NN1 of_IO Lloyd_NP1 's_GE for_IF breach_NN1 of_IO fiduciary_JJ duty_NN1 from_II US_NP1 investors_NN2 ._. 
Huhne_NN1 runner-up_NN1 ._. 
Christopher_NP1 Huhne_NP1 ,_, the_AT Guardian_NN1 's_GE Economics_NN1 Editor_NN1 ,_, was_VBDZ yesterday_RT the_AT runner-up_NN1 in_II the_AT press_NN1 awards_NN2 for_IF articles_NN2 on_II 1992_MC presented_VVD by_II Arrows_NN2 ,_, the_AT Cheshire_NP1 trade_NN1 finance_NN1 group_NN1 ._. 
Dan_NP1 Atkinson_NP1 ,_, deputy_NN1 city_NN1 and_CC economics_NN1 editor_NN1 of_IO the_AT Press_NN1 Association_NN1 was_VBDZ the_AT winner_NN1 ,_, and_CC Anthony_NP1 Hilton_NP1 ,_, the_AT financial_JJ editor_NN1 of_IO the_AT Evening_NNT1 Standard_NN1 came_VVD third_MD ._. 
Economics_NN1 column_NN1 ,_, page_NN1 15_MC ._. 
Coniston_NP1 in_II union_NN1 talks_NN2 ._. 
Coniston_NP1 Partners_NN2 ,_, the_AT New_JJ York-based_JJ investment_NN1 firm_NN1 seeking_VVG to_TO oust_VVI United_JJ Airlines_NN2 '_GE board_NN1 ,_, is_VBZ due_JJ to_TO meet_VVI the_AT engineers_NN2 union_NN1 today_RT to_TO discuss_VVI its_APPGE plans_NN2 for_IF the_AT big_JJ US_NP1 carrier_NN1 ._. 
It_PPH1 met_VVD the_AT flight_NN1 attendants_NN2 '_GE union_NN1 on_II Monday_NPD1 and_CC is_VBZ also_RR hoping_VVG to_TO talk_VVI to_II the_AT pilots_NN2 '_GE union_NN1 ._. 
Pembridge_NP1 buys_VVZ more_RRR ._. 
Pembridge_NP1 ,_, Roland_NP1 Franklin_NP1 's_GE vehicle_NN1 for_IF the_AT 697million_FO bid_VV0 for_IF DRG_NP1 ,_, bought_VVD more_DAR shares_NN2 yesterday_RT ._. 
It_PPH1 now_RT claims_VVZ to_TO have_VHI 56_MC per_NNU21 cent_NNU22 of_IO DRG_NP1 ,_, but_CCB Mr_NNB Franklin_NP1 would_VM not_XX say_VVI when_RRQ the_AT bid_NN1 would_VM go_VVI unconditional_JJ ._. 
He_PPHS1 is_VBZ waiting_VVG for_IF the_AT shares_NN2 to_TO be_VBI registered_VVN in_II Pembridge_NP1 's_GE name_NN1 ._. 
Docks_NN2 hopes_NN2 '_GE dashed_JJ '_GE ._. 
The_AT transport_NN1 union_NN1 TGWU_NP1 yesterday_RT claimed_VVD the_AT last_MD hope_NN1 of_IO reviving_VVG the_AT Manchester_NP1 docks_NN2 had_VHD been_VBN jeopardised_VVN by_II the_AT Manchester_NP1 Ship_NN1 Canal_NN1 company_NN1 's_GE indifference_NN1 to_II obtaining_VVG a_AT1 new_JJ shipping_NN1 service_NN1 which_DDQ union_NN1 officials_NN2 valued_VVN at_II 1.5million_FO annually_RR ._. 
Buy-out_NN1 move_NN1 planned_VVN by_II B&amp;C_FO ._. 
By_II Lisa_NP1 Buckingham_NP1 ALEVERAGED_NP1 buy-out_NN1 for_IF British&amp;Commonwealth_FO will_VM be_VBI mounted_VVN by_II the_AT company_NN1 's_GE management_NN1 if_CS an_AT1 unacceptably_RR low_JJ takeover_NN1 offer_NN1 is_VBZ tabled_VVN ,_, the_AT chairman_NN1 ,_, John_NP1 Gunn_NP1 ,_, pledged_VVD yesterday_RT ._. 
He_PPHS1 admitted_VVD that_CST with_IW prevailing_JJ high_JJ interest_NN1 rates_NN2 he_PPHS1 was_VBDZ not_XX particularly_RR keen_JJ to_TO mount_VVI a_AT1 management_NN1 bid_NN1 ,_, but_CCB would_VM do_VDI so_RR if_CS it_PPH1 was_VBDZ the_AT only_JJ way_NN1 to_TO safeguard_VVI shareholder_NN1 value_NN1 ._. 
B&amp;C_FO ,_, the_AT one-time_JJ star_NN1 of_IO the_AT financial_JJ services_NN2 sector_NN1 ,_, is_VBZ planning_VVG to_TO raise_VVI at_RR21 least_RR22 130_MC million_NNO from_II the_AT sale_NN1 of_IO its_APPGE Gartmore_NN1 fund_NN1 management_NN1 business_NN1 which_DDQ was_VBDZ announced_VVN yesterday_RT ._. 
Aetna_NN1 ,_, the_AT large_JJ US_NP1 insurance_NN1 group_NN1 is_VBZ understood_VVN to_TO be_VBI a_AT1 front_JJ runner_NN1 on_II the_AT 20-strong_JJ list_NN1 of_IO potential_JJ buyers_NN2 for_IF Gartmore_NP1 ._. 
Analysts_NN2 added_VVD ,_, however_RR ,_, that_CST the_AT company_NN1 was_VBDZ expected_VVN to_TO attract_VVI interest_NN1 from_II Japan_NP1 and_CC Europe_NP1 ._. 
Opening_VVG bids_NN2 will_VM have_VHI to_TO be_VBI lodged_VVN by_II December_NPM1 11_MC with_IW a_AT1 decision_NN1 on_II the_AT sale_NN1 expected_VVN by_II the_AT end_NN1 of_IO January_NPM1 1990_MC ._. 
B&amp;C_FO says_VVZ it_PPH1 has_VHZ received_VVN a_AT1 stream_NN1 of_IO offers_NN2 for_IF Gartmore_NP1 ,_, the_AT international_JJ group_NN1 which_DDQ employs_VVZ about_RG 500_MC people_NN and_CC has_VHZ some_DD 6.4billion_FO under_II management_NN1 ,_, over_II the_AT past_NN1 two_MC to_II three_MC years_NNT2 ._. 
But_CCB Mr_NNB Gunn_NP1 said_VVD other_JJ disposals_NN2 should_VM take_VVI that_DD1 total_NN1 to_II between_II 400million_FO and_CC 500million_FO before_CS the_AT end_NN1 of_IO next_MD year_NNT1 ._. 
Disposals_NN2 such_II21 as_II22 Woodchester_NP1 ,_, London_NP1 Forfaiting_NP1 ,_, the_AT three_MC Gartmore_NP1 trusts_NN2 ,_, and_CC two_MC divisions_NN2 of_IO Atlantic_NP1 Computers_NN2 should_VM raise_VVI another_DD1 225million_FO ,_, Mr_NNB Gunn_NP1 said_VVD yesterday_RT ._. 
Analysts_NN2 also_RR expect_VV0 the_AT company_NN1 to_TO shed_VVI its_APPGE large_JJ stake_NN1 in_II merchant_NN1 bank_NN1 Singer_NP1 &amp;_CC Friedlander_NP1 ._. 
He_PPHS1 said_VVD that_CST although_CS speculation_NN1 was_VBDZ mounting_VVG that_CST a_AT1 bid_NN1 for_IF B&amp;C_FO was_VBDZ on_II the_AT cards_NN2 ,_, there_EX was_VBDZ no_AT evidence_NN1 ,_, so_RG far_RR ,_, of_IO stake-building_NN1 and_CC no_AT offers_NN2 had_VHD been_VBN received_VVN ._. 
The_AT business_NN1 sales_NN were_VBDR designed_VVN to_TO cut_VVI the_AT 30_MC per_NNU21 cent_NNU22 of_IO B&amp;C_FO 's_GE borrowings_NN2 which_DDQ are_VBR currently_RR under_RG fluctuating_JJ interests_NN2 rates_NN2 roughly_RR 200_MC million_NNO of_IO its_APPGE overall_JJ loans_NN2 ._. 
Mr_NNB Gunn_NP1 said_VVD B&amp;C_FO 's_GE predicament_NN1 ,_, with_IW shares_NN2 at_II the_AT levels_NN2 of_IO roughly_RR five_MC years_NNT2 ago_RA ,_, was_58 '_GE a_RR21 little_RR22 embarrassing_JJ '_GE but_CCB he_PPHS1 predicted_VVD the_AT group_NN1 would_VM be_VBI back_RP in_II City_NN1 favour_NN1 by_II the_AT end_NN1 of_IO next_MD year_NNT1 ._. 
'_GE The_AT problem_NN1 is_VBZ that_CST has_VHZ a_AT1 credibility_NN1 problem_NN1 ._. 
If_CS Gunn_NP1 said_VVD '_" I_PPIS1 'm_VBM a_AT1 human_JJ being_NN1 '_GE half_DB the_AT analysts_NN2 would_VM say_VVI he_PPHS1 was_VBDZ a_AT1 cardboard_JJ cutout_NN1 ._. 
It_PPH1 is_VBZ not_XX a_AT1 question_NN1 of_IO loathing_NN1 rather_RG sanguine_JJ hatred_NN1 following_VVG the_AT dive_NN1 in_II the_AT share_NN1 price_NN1 ,_, '_GE said_VVD one_MC1 analyst_NN1 ._. 
Shares_NN2 in_II British&amp;Commonwealth_FO have_VH0 dived_VVN from_II about_RG 550p_NNU to_II 120p_NNU but_CCB Mr_NNB Gunn_NP1 ,_, said_VVD he_PPHS1 is_VBZ confident_JJ of_IO captivating_JJ City_NN1 confidence_NN1 once_RR21 more_RR22 ._. 
He_PPHS1 admitted_VVD taking_VVG his_APPGE hand_NN1 off_II the_AT tiller_NN1 at_II the_AT group_NN1 but_CCB denied_VVD any_DD boardroom_NN1 rift_NN1 over_II strategy_NN1 ._. 
Caparo_NN1 raises_VVZ offer_NN1 price_NN1 ._. 
Swraj_NP1 Paul_NP1 's_GE Caparo_NP1 Automotive_NP1 group_NN1 raised_VVD its_APPGE cash_NN1 offer_NN1 for_IF Armstrong_NP1 Equipment_NN1 to_II 185p_NNU yesterday_RT ,_, valuing_VVG the_AT fasteners_NN2 manufacturer_NN1 at_II 98million_FO ,_, and_CC promptly_RR increased_VVD its_APPGE holding_NN1 to_II 46.7_MC per_NNU21 cent_NNU22 ._. 
This_DD1 tally_NN1 is_VBZ boosted_VVN by_II Caparo_NP1 's_GE purchase_NN1 of_IO JHFenner_NP1 's_GE 6.32_MC per_NNU21 cent_NNU22 holding_NN1 ._. 
Fenner_NP1 ,_, the_AT Hull-based_JJ power_NN1 transmission_NN1 engineer_NN1 ,_, bought_VVD the_AT stake_NN1 when_CS the_AT original_JJ bid_NN1 was_VBDZ announced_VVN and_CC had_VHD offered_VVN to_TO act_VVI as_RG white_JJ knight_NN1 to_II Armstrong_NP1 and_CC to_TO distribute_VVI their_APPGE fasteners_NN2 through_II its_APPGE own_DA international_JJ network_NN1 ._. 
'_" It_PPH1 is_VBZ no_AT surprise_NN1 that_CST JHFenner_NP1 has_VHZ decided_VVN to_TO sell_VVI their_APPGE shares_NN2 to_II us_PPIO2 at_II our_APPGE generous_JJ increased_JJ offer_NN1 price_NN1 ,_, '_GE Dr_NNB Paul_NP1 said_VVD ._. 
The_AT Armstrong_NP1 chairman_NN1 ,_, Roy_NP1 Watts_NP1 ,_, said_VVD the_AT Caparo_NN1 bid_NN1 was_VBDZ too_RG low_JJ by_II any_DD standard_NN1 ._. 
'_GE A_AT1 bid_NN1 of_IO 185p_NNU clearly_RR undervalues_VVZ Armstrong_NP1 and_CC Dr_NNB Paul_NP1 knows_VVZ it_PPH1 ,_, '_" he_PPHS1 said_VVD ._. 
'_" It_PPH1 really_RR is_VBZ time_NNT1 he_PPHS1 got_VVD on_RP with_IW running_VVG his_APPGE own_DA business_NN1 and_CC let_VV0 us_PPIO2 run_VVI ours_PPGE ._. 
Nobody_PN1 benefits_NN2 from_II all_DB this_DD1 ._. 
'_GE During_II the_AT day_NNT1 ,_, holders_NN2 of_IO a_AT1 further_JJR 11.1_MC per_NNU21 cent_NNU22 of_IO Armstrong_NP1 shares_NN2 ignored_VVD the_AT chairman_NN1 's_GE appeal_NN1 and_CC sold_VVN to_II Caparo_NP1 ._. 
Parkland_NN1 holds_VVZ steady_JJ ._. 
Parkland_NN1 Textiles_NN2 ,_, the_AT Bradford-based_JJ woollen_JJ yarn_NN1 spinner_NN1 and_CC clothing_NN1 maker_NN1 ,_, yesterday_RT showed_VVD a_AT1 small_JJ increase_NN1 in_II profits_NN2 ,_, despite_II a_AT1 difficult_JJ six_MC months_NNT2 trading_VVG ._. 
Mr_NNB Michael_NP1 Rowley_NP1 ,_, finance_NN1 director_NN1 ,_, said_VVD the_AT group_NN1 had_VHD foreseen_VVN the_AT problems_NN2 and_CC had_VHD made_VVN an_AT1 effort_NN1 to_TO increase_VVI income_NN1 from_II interest_NN1 ,_, which_DDQ came_VVD in_RP at_II 64,000_MC as_II21 against_II22 a_AT1 charge_NN1 of_IO 78,000_MC at_II the_AT halfway_JJ stage_NN1 last_MD year_NNT1 ._. 
Pre-tax_JJ profits_NN2 were_VBDR up_RP 7.5_MC per_NNU21 cent_NNU22 at_II 1.48million_FO on_II turnover_NN1 marginally_RR ahead_RL at_II 29.5million_FO ._. 
Cash_NN1 in_II the_AT bank_NN1 stands_VVZ at_II about_II 1million_FO ,_, but_CCB the_AT company_NN1 has_VHZ a_AT1 2.6million_FO loan_NN1 at_II 10_MC per_NNU21 cent_NNU22 ._. 
Chief_JJ executive_NN1 Paul_NP1 Hanson_NP1 ,_, with_IW an_AT1 eye_NN1 on_II falling_VVG consumer_NN1 demand_NN1 in_II the_AT UK_NP1 ,_, hopes_VVZ to_II double_JJ exports_NN2 by_II the_AT end_NN1 of_IO the_AT financial_JJ year_NNT1 ._. 
Meanwhile_RR ,_, the_AT interim_JJ dividend_NN1 has_VHZ been_VBN raised_VVN to_II 2.2p_NNU ._. 
Steely_JJ effort_NN1 from_II GEI_NP1 ._. 
GEI_NP1 International_JJ ,_, the_AT packaging_NN1 machinery_NN1 and_CC special_JJ wire_NN1 and_CC cutting_VVG steels_NN2 manufacturer_NN1 ,_, lifted_VVD profit_NN1 again_RT in_II the_AT first_MD half_NN1 of_IO the_AT year_NNT1 ._. 
The_AT search_NN1 for_IF internationally-oriented_JJ acquisitions_NN2 in_II packaging_NN1 goes_VVZ on_RP ,_, backed_VVN by_II cash_NN1 resources_NN2 of_IO about_II 15million_FO ._. 
The_AT Allspeeds_NP2 drives_NN2 and_CC controls_VVZ subsidiary_NN1 is_VBZ the_AT only_JJ remaining_JJ poor_JJ performer_NN1 ,_, but_CCB its_APPGE losses_NN2 have_VH0 been_VBN stopped_VVN ._. 
Because_II21 of_II22 the_AT Midland_NP1 Bright_NP1 Drawn_VVN Steel_NN1 sale_NN1 ,_, after_CS the_AT Steel_NP1 Stampings_NP1 disposal_NN1 to_II Parkland_NN1 last_MD year_NNT1 ,_, turnover_NN1 was_VBDZ reduced_VVN to_II 33.7million_FO ,_, from_II 636.2million_FO in_II the_AT six_MC months_NNT2 to_II September_NPM1 30_MC ._. 
Pre-tax_JJ profit_NN1 rose_VVD to_II 2.95million_FO ,_, from_II 2.52million_FO ,_, excluding_VVG the_AT extraordinary_JJ gain_NN1 of_IO 249,000_MC on_II the_AT sale_NN1 ._. 
Profitability_NN1 in_II the_AT main_JJ business_NN1 rose_VVD further_RRR and_CC Sanderson_NP1 Kayser_NP1 and_CC other_JJ special_JJ steels_NN2 held_VVD their_APPGE ground_NN1 ._. 
The_AT interim_JJ dividend_NN1 is_VBZ raised_VVN to_II 2.35p_NNU ,_, from_II 2.14p_NNU net_NN1 a_AT1 share_NN1 ,_, covered_VVN by_II earnings_NN2 up_RP 0.75p_NNU to_II 4.97p_NNU ._. 
In_RR21 short_RR22 ..._... 
KENNING_NP1 Motor_NN1 Group_NN1 ,_, a_AT1 subsidiary_NN1 of_IO Ron_NP1 Brierley_NP1 's_VBZ quoted_VVN UK_NP1 motor_NN1 dealership_NN1 ,_, Tozer_NP1 Kemsley_NP1 and_CC Millbourn_NP1 ,_, achieved_VVN a_AT1 slim_JJ increase_NN1 in_II pre-tax_JJ profit_NN1 to_II 1.6million_FO (_( against_II 1.59million_FO last_MD year_NNT1 )_) in_II the_AT six_MC months_NNT2 to_II the_AT end_NN1 of_IO June_NPM1 ,_, although_CS turnover_NN1 fell_VVD from_II 96.5million_FO in_II 1988_MC to_II 88.7million_FO ._. 
The_AT markets_NN2 ._. 
Stock_NN1 markets_NN2 preferred_VVD to_TO take_VVI notice_NN1 of_IO the_AT continued_JJ strength_NN1 of_IO sterling_NN1 ,_, rather_II21 than_II22 Wall_NP1 Street_NNL1 's_GE fresh_JJ tumble_NN1 of_IO nearly_RR 50_MC points_NN2 ._. 
So_RR an_AT1 early_JJ mark-down_NN1 of_IO a_AT1 few_DA2 pence_NNU was_VBDZ soon_RR recouped_VVN ,_, and_CC by_II the_AT close_JJ the_AT FTSE_NN1 index_NN1 had_VHD reversed_VVN the_AT initial_JJ fall_NN1 of_IO over_NN1 nearly_RR eight_MC points_NN2 as_CSA New_NP1 York_NP1 showed_VVD signs_NN2 of_IO a_AT1 more_RGR stable_JJ performance_NN1 ._. 
Gilts_NN2 improved_VVD a_AT1 quarter_NN1 as_CSA fears_NN2 of_IO another_DD1 hike_NN1 in_II interest_NN1 rates_NN2 receded_VVD ._. 
For_IF equities_NN2 it_PPH1 was_VBDZ a_AT1 day_NNT1 for_IF special_JJ situations_NN2 ._. 
Mining_VVG stocks_NN2 made_VVD the_AT running_NN1 as_CSA gold_NN1 and_CC kindred_JJ metal_NN1 prices_NN2 advanced_VVD afresh_RR ._. 
Insurances_NN2 also_RR did_VDD well_RR ,_, helped_VVN by_II a_AT1 report_NN1 in_II an_AT1 American_JJ newspaper_NN1 predicting_VVG higher_JJR premiums_NN2 after_II the_AT earthquake_NN1 and_CC hurricane_NN1 disasters_NN2 earlier_RRR this_DD1 year_NNT1 ._. 
Elsewhere_RL price_NN1 movements_NN2 were_VBDR small_JJ ._. 
Stores_NN2 were_VBDR drab_JJ ,_, unsettled_VVN by_II heavier-than-expected_JJR losses_NN2 at_II Tie_NN1 Rack_NN1 ,_, 47p_NNU ,_, down_RP 7p_NNU ._. 
Storehouse_NN1 ,_, where_CS brokers_NN2 have_VH0 been_VBN downgrading_VVG their_APPGE forecasts_NN2 almost_RR monthly_JJ ,_, slipped_VVD 6p_NNU to_II 106p_NNU ahead_II21 of_II22 tomorrow_RT 's_GE figures_NN2 ._. 
In_II contrast_NN1 ,_, food_NN1 retailers_NN2 were_VBDR supported_VVN ahead_II21 of_II22 today_RT 's_GE interim_JJ statement_NN1 from_II Sainsbury_NP1 ,_, but_CCB Iceland_NP1 Frozen_JJ Foods_NN2 plunged_VVD 39p_NNU to_II 280p_NNU as_II Hoare_NP1 Govett_NP1 and_CC at_RR21 least_RR22 two_MC other_JJ brokers_NN2 downgraded_VVD their_APPGE forecasts_NN2 ._. 
There_EX was_VBDZ excitement_NN1 in_II the_AT merchant_NN1 banking_NN1 sector_NN1 during_II the_AT afternoon_NNT1 as_CSA talks_NN2 between_II Morgan_NP1 Grenfell_NP1 and_CC BZW_NP1 broke_VVD down_RP ._. 
Morgan_NP1 Grenfell_NP1 shares_NN2 ,_, up_RP 14p_NNU to_II 485p_NNU before_II the_AT news_NN1 ,_, dropped_VVD immediately_RR to_II 430p_NNU ,_, before_II bouncing_VVG back_RP almost_RR as_CSA quickly_RR to_TO close_VVI unchanged_JJ at_II 468p_NNU ._. 
Paris_NP1 :_: Interest-rate_NN1 concerns_NN2 and_CC the_AT weak_JJ tone_NN1 of_IO US_NP1 issues_NN2 combined_VVN to_TO send_VVI stocks_NN2 lower_VV0 in_II light_JJ trading_NN1 ._. 
CAC_JJ Index_NN1 :_: 500.6_MC (_( 511.1_MC )_) ._. 
Frankfurt_NP1 :_: Shares_NN2 closed_VVD lower_JJR ,_, following_VVG Wall_NP1 Street_NNL1 's_GE lead_NN1 ._. 
Hong_NP1 Kong_NP1 :_: Stocks_NN2 fell_VVD ._. 
Hang_VV0 Seng_NP1 index_NN1 :_: 2,738.09_MC (_( 2,756.12_MC )_) ._. 
Tokyo_NP1 :_: Stocks_NN2 closed_VVD lower_JJR for_IF the_AT third_MD consecutive_JJ trading_NN1 day_NNT1 ._. 
Nikkei_NP1 index_NN1 :_: 35,270.46_MC (_( 35,434.00_MC )_) ._. 
French_JJ trust_NN1 group_NN1 suspends_VVZ dealings_NN2 over_II pricing_VVG fears_NN2 ._. 
By_II Teresa_NP1 Hunter_NP1 THE_AT French-owned_JJ unit-trust_JJ company_NN1 Dumenil_NP1 has_VHZ suspended_VVN dealings_NN2 in_II its_APPGE funds_NN2 ,_, worth_II 33_MC million_NNO ,_, after_CS the_AT disclosure_NN1 that_CST there_EX may_VM have_VHI been_VBN pricing_VVG errors_NN2 in_II recent_JJ valuations_NN2 ._. 
This_DD1 is_VBZ the_AT first_MD time_NNT1 a_AT1 unit_NN1 trust_NN1 company_NN1 has_VHZ had_VHN to_TO suspend_VVI funds_NN2 under_II the_AT Financial_JJ Services_NN2 Act_NN1 's_GE pricing_NN1 regulations_NN2 ,_, which_DDQ oblige_VV0 it_PPH1 to_TO cease_VVI trading_VVG once_RR an_AT1 error_NN1 is_VBZ suspected_VVN ._. 
It_PPH1 means_VVZ Dumenil_NP1 's_GE 12,000_MC investors_NN2 are_VBR locked_VVN into_II their_APPGE investments_NN2 until_CS the_AT investigation_NN1 is_VBZ complete_JJ ._. 
As_II the_AT suspension_NN1 of_IO a_AT1 unit_NN1 trust_NN1 over_II a_AT1 pricing_NN1 error_NN1 is_VBZ unprecedented_JJ ,_, it_PPH1 is_VBZ not_XX known_VVN when_CS units_NN2 can_VM be_VBI traded_VVN again_RT ._. 
One_MC1 month_NNT1 has_VHZ been_VBN suggested_VVN as_II a_AT1 possible_JJ suspension_NN1 period_NN1 ._. 
Dumenil_VV0 ,_, which_DDQ specialises_VVZ in_II single_JJ country_NN1 European_JJ funds_NN2 ,_, claims_VVZ it_PPH1 became_VVD concerned_JJ '_GE very_RG recently_RR '_" that_CST its_APPGE valuations_NN2 on_II two_MC funds_NN2 in_RR21 particular_RR22 were_VBDR out-of-line_JJ with_IW general_JJ movements_NN2 in_II the_AT market_NN1 ._. 
The_AT marketing_NN1 director_NN1 ,_, Nigel_NP1 Herrick_NP1 ,_, said_VVD :_: '_GE The_AT market_NN1 would_VM fall_VVI ,_, but_CCB our_APPGE prices_NN2 would_VM not_XX show_VVI a_AT1 corresponding_JJ movement_NN1 ._. 
'_GE Unit_NN1 trust_NN1 industry_NN1 sources_NN2 claim_VV0 that_CST rumours_NN2 began_VVD circulating_VVG as_CS31 long_CS32 as_CS33 three_MC months_NNT2 ago_RA that_CST Dumenil_NP1 had_VHD a_AT1 problem_NN1 with_IW valuations_NN2 ._. 
The_AT company_NN1 stresses_VVZ the_AT problem_NN1 has_VHZ been_VBN very_RG short-lived_JJ ._. 
But_CCB as_II a_AT1 precaution_NN1 it_PPH1 has_VHZ suspended_VVN all_DB its_APPGE funds_NN2 ,_, until_CS an_AT1 investigation_NN1 pinpoints_VVZ the_AT root_NN1 of_IO the_AT problem_NN1 ._. 
Unit_NN1 trust_NN1 prices_NN2 are_VBR calculated_VVN on_II computers_NN2 using_VVG market_NN1 information_NN1 supplied_VVN by_II the_AT WM_NP1 Company_NN1 ._. 
There_EX is_VBZ no_AT suggestion_NN1 that_CST the_AT WM_NP1 data_NN has_VHZ been_VBN faulty_JJ ._. 
Mr_NNB Herrick_NP1 said_VVD :_: '_" This_DD1 is_VBZ an_AT1 in-house_JJ problem_NN1 ._. 
Right_RR now_RT we_PPIS2 do_VD0 not_XX know_VVI the_AT extent_NN1 of_IO that_DD1 problem_NN1 ._. 
We_PPIS2 do_VD0 not_XX know_VVI which_DDQ ,_, if_CS any_DD ,_, funds_NN2 are_VBR affected_VVN and_CC we_PPIS2 do_VD0 not_XX know_VVI whether_CSW there_EX has_VHZ been_VBN an_AT1 over_JJ valuation_NN1 or_CC an_AT1 under_RG valuation_NN1 ._. 
'_GE Dumenil_NN1 has_VHZ called_VVN in_II Touche_NP1 Ross_NP1 as_CSA independent_JJ accountants_NN2 to_TO assess_VVI the_AT scale_NN1 of_IO the_AT problem_NN1 ._. 
The_AT regulatory_JJ bodies_NN2 ,_, including_II the_AT Securities_NN2 and_CC Investments_NN2 Board_VV0 ,_, the_AT Investment_NN1 Managers_NN2 Regulatory_JJ Organisation_NN1 and_CC the_AT Life_NN1 Assurance_NN1 and_CC Unit_NN1 Trust_NN1 Regulatory_JJ Organisation_NN1 are_VBR keeping_VVG a_AT1 close_JJ eye_NN1 on_II the_AT investigation_NN1 procedure_NN1 ._. 
If_CS it_PPH1 is_VBZ proved_VVN that_DD1 unit_NN1 holders_NN2 who_PNQS have_VH0 traded_VVN units_NN2 recently_RR have_VH0 suffered_VVN as_II a_AT1 result_NN1 of_IO pricing_VVG errors_NN2 ,_, some_DD form_NN1 of_IO compensation_NN1 will_VM be_VBI made_VVN available_JJ ._. 
Midland_NP1 Bank_NP1 ,_, one_MC1 of_IO the_AT trustees_NN2 of_IO the_AT Dumenil_NP1 funds_NN2 ,_, stepped_VVD in_RP to_TO calm_VVI investors_NN2 '_GE fears_NN2 ._. 
A_ZZ1 Midland_NP1 spokesman_NN1 said_VVD :_: '_GE The_AT assets_NN2 of_IO the_AT trust_NN1 have_VH0 been_VBN and_CC continue_VV0 to_TO be_VBI under_II the_AT control_NN1 of_IO the_AT trustee_NN1 whose_DDQGE objective_NN1 remains_VVZ that_DD1 of_IO insuring_VVG that_CST the_AT interests_NN2 of_IO the_AT investors_NN2 are_VBR protected_VVN ._. 
'_GE The_AT aftershocks_NN2 of_IO the_AT European_JJ row_NN1 tell_VV0 us_PPIO2 that_CST the_AT big_JJ tremors_NN2 are_VBR still_JJ to_TO come_VVI Economics_NN1 ._. 
By_II Christopher_NP1 Huhne_NP1 WHATEVER_DDQV the_AT hopes_NN2 of_IO the_AT Conservative_JJ party_NN1 's_GE managers_NN2 ,_, the_AT divisions_NN2 over_II European_JJ policy_NN1 are_VBR not_XX going_VVGK to_TO go_VVI away_RL ._. 
There_EX is_VBZ bound_VVN ,_, sooner_RRR or_CC later_RRR ,_, to_TO be_VBI a_AT1 battle_NN1 royal_JJ over_II membership_NN1 of_IO the_AT European_JJ Monetary_JJ System_NN1 ,_, the_AT result_NN1 of_IO which_DDQ will_VM be_VBI either_RR an_AT1 almost_RR unprecedented_JJ humiliation_NN1 for_IF Mrs_NNB Thatcher_NP1 or_CC the_AT reshaping_NN1 yet_RR again_RT of_IO a_AT1 Cabinet_NN1 in_II her_APPGE own_DA image_NN1 ._. 
On_II present_JJ betting_NN1 ,_, there_EX is_VBZ a_AT1 fair_JJ chance_NN1 the_AT pound_NN1 will_VM finally_RR join_VVI the_AT system_NN1 by_II the_AT end_NN1 of_IO next_MD year_NNT1 ._. 
Mrs_NNB Thatcher_NP1 interprets_VVZ the_AT Madrid_NP1 formula_NN1 more_RRR as_II a_AT1 pretext_NN1 for_IF not_XX joining_VVG the_AT EMS_NP1 than_CSN as_II a_AT1 set_NN1 of_IO three_MC conditions_NN2 for_IF joining_VVG it_PPH1 ._. 
Moreover_RR ,_, she_PPHS1 has_VHZ been_VBN advised_VVN by_II Sir_NNB Alan_NP1 Walters_NP that_DD1 ,_, once_RR exchange_VV0 controls_NN2 have_VH0 finally_RR been_VBN removed_VVN by_II France_NP1 and_CC Italy_NP1 in_II July_NPM1 1990_MC ,_, the_AT new_JJ freedom_NN1 of_IO capital_NN1 flows_NN2 will_VM break_VVI the_AT fixed_JJ exchange_NN1 rate_NN1 system_NN1 apart_RL ._. 
On_II that_DD1 fond_JJ hope_NN1 ,_, she_PPHS1 is_VBZ likely_JJ to_TO be_VBI disappointed_JJ ._. 
The_AT remaining_JJ controls_NN2 ,_, mainly_RR affecting_VVG restrictions_NN2 on_II bank_NN1 deposits_NN2 ,_, are_VBR small_JJ ._. 
At_II some_DD point_NN1 in_II the_AT second_MD half_NN1 of_IO next_MD year_NNT1 ,_, and_CC perhaps_RR even_RR earlier_RRR if_CS President_NNB Mitterrand_NP1 decides_VVZ to_TO bring_VVI forward_RL the_AT abolition_NN1 of_IO French_JJ controls_NN2 ,_, the_AT Government_NN1 is_VBZ going_VVGK to_TO be_VBI faced_VVN with_IW an_AT1 inescapable_JJ decision_NN1 ._. 
Controls_NN2 will_VM have_VHI gone_VVN ._. 
British_JJ inflation_NN1 will_VM be_VBI down_RP (_( an_AT1 odd_JJ condition_NN1 ,_, since_CS one_MC1 reason_NN1 for_IF the_AT system_NN1 is_VBZ to_TO help_VVI reduce_VVI inflation_NN1 )_) ._. 
There_EX will_VM have_VHI been_VBN progress_NN1 on_II the_AT creation_NN1 of_IO a_AT1 single_JJ European_JJ market_NN1 ,_, especially_RR in_II financial_JJ services_NN2 ._. 
Reasonable_JJ people_NN will_VM decide_VVI that_CST each_DD1 of_IO the_AT Madrid_NP1 conditions_NN2 has_VHZ been_VBN met_VVN ._. 
At_II that_DD1 stage_NN1 ,_, the_AT pressures_NN2 for_IF full_JJ membership_NN1 are_VBR bound_VVNK to_TO mount_VVI at_II home_NN1 and_CC overseas_RL ._. 
The_AT pound_NN1 may_VM now_RT stay_VVI at_II its_APPGE new_JJ post-Lawson_JJ level_NN1 or_CC even_RR decline_VV0 further_RRR ._. 
But_CCB at_II an_AT1 exchange_NN1 rate_NN1 of_IO ,_, say_VV0 ,_, DM2.70_FO (_( instead_II21 of_II22 the_AT present_NN1 DM2.90_FO )_) the_AT trade-offs_NN2 for_IF the_AT new_JJ Chancellor_NN1 will_VM begin_VVI to_TO look_VVI different_JJ ._. 
He_PPHS1 will_VM want_VVI to_TO avoid_VVI a_AT1 further_JJR decline_NN1 for_IF fear_NN1 that_CST import_VV0 price_NN1 rises_NN2 will_VM push_VVI up_RP inflation_NN1 ._. 
For_RR21 good_RR22 electoral_JJ reasons_NN2 ,_, EMS_NP1 membership_NN1 will_VM look_VVI an_AT1 increasingly_RR attractive_JJ alternative_NN1 to_II a_AT1 tighter_JJR monetary_JJ policy_NN1 ._. 
The_AT going_NN1 will_VM be_VBI tough_JJ enough_RR as_CSA it_PPH1 is_VBZ ._. 
The_AT former_DA Chancellor_NN1 ,_, Mr_NNB Lawson_NP1 ,_, gave_VVD a_AT1 foretaste_NN1 of_IO the_AT Treasury_NN1 's_GE Autumn_NNT1 Statement_NN1 forecast_NN1 when_RRQ ,_, in_II his_APPGE resignation_NN1 speech_NN1 ,_, he_PPHS1 pointed_VVD out_RP that_DD1 '_VBZ we_PPIS2 are_VBR once_RR21 again_RR22 on_II the_AT downswing_NN1 and_CC I_PPIS1 see_VV0 no_AT need_NN1 for_IF any_DD further_JJR policy_NN1 tightening_NN1 ._. 
While_CS this_DD1 downswing_NN1 will_VM not_XX be_VBI as_RG sharp_JJ as_CSA the_AT previous_JJ downturn_NN1 (_( in_II 1979-81_MCMC )_) ,_, not_XX least_RRT given_VVN the_AT very_RG much_DA1 lower_JJR level_NN1 of_IO inflation_NN1 that_CST we_PPIS2 now_RT have_VH0 ,_, a_AT1 dull_JJ 1989_MC is_VBZ bound_VVNK to_TO be_VBI followed_VVN by_II a_AT1 difficult_JJ 1990_MC ._. 
'_GE The_AT downturn_NN1 will_VM not_XX ,_, though_CS ,_, undermine_VV0 the_AT case_NN1 for_IF EMS_NP1 membership_NN1 ._. 
A_AT1 mild_JJ recession_NN1 will_VM correct_VVI but_CCB not_XX eliminate_VV0 the_AT deficit_NN1 ,_, which_DDQ is_VBZ bound_VVNK to_TO remain_VVI high_JJ ,_, and_CC may_VM even_RR rise_VVI again_RT as_CSA another_DD1 pre-election_JJ consumer_NN1 spree_NN1 gathers_VVZ pace_NN1 ._. 
Outside_II the_AT EMS_NP1 ,_, the_AT markets_NN2 would_VM become_VVI worried_JJ once_RR21 again_RR22 about_II the_AT Government_NN1 's_GE real_JJ commitment_NN1 to_II exchange_NN1 rate_NN1 stability_NN1 ._. 
They_PPHS2 would_VM insist_VVI on_II inflationary_JJ falls_NN2 in_II the_AT pound_NN1 ,_, or_CC a_AT1 deflationary_JJ tightening_NN1 of_IO monetary_JJ policy_NN1 ._. 
What_DDQ better_RRR than_CSN EMS_NP1 membership_NN1 to_TO reassure_VVI them_PPHO2 ?_? 
The_AT external_JJ pressures_NN2 for_IF EMS_NP1 membership_NN1 will_VM also_RR mount_VVI ._. 
It_PPH1 will_VM become_VVI increasingly_RR clear_VV0 that_CST Britain_NP1 is_VBZ paying_VVG a_AT1 high_JJ political_JJ price_NN1 for_IF its_APPGE refusal_NN1 to_TO participate_VVI in_II the_AT EMS_NP1 ,_, not_XX least_RRT in_II the_AT almost_RR immediate_JJ reflex_JJ reaction_NN1 against_II any_DD British_JJ proposals_NN2 to_TO affect_VVI the_AT design_NN1 of_IO a_AT1 future_JJ monetary_JJ union_NN1 ._. 
No_PN121 one_PN122 watching_VVG the_AT French_JJ reaction_NN1 to_II the_AT unfolding_JJ events_NN2 in_II central_JJ Europe_NP1 should_VM doubt_VVI the_AT political_JJ importance_NN1 which_DDQ the_AT Elysee_NP1 attaches_VVZ to_II monetary_JJ union_NN1 as_II a_AT1 way_NN1 of_IO anchoring_VVG west_ND1 Germany_NP1 to_II this_DD1 end_NN1 of_IO the_AT Continent_NN1 ._. 
A_AT1 single_JJ currency_NN1 is_VBZ also_RR on_II the_AT agenda_NN1 because_CS the_AT balance_NN1 of_IO the_AT economic_JJ argument_NN1 has_VHZ also_RR swung_VVN sharply_RR in_II its_APPGE favour_NN1 over_II the_AT last_MD decade_NNT1 ,_, as_CSA Professor_NNB Michael_NP1 Artis_NP1 has_VHZ pointed_VVN out_RP (_( 1_MC1 )_) ._. 
He_PPHS1 guesstimates_VVZ that_CST the_AT existence_NN1 of_IO different_JJ European_JJ currencies_NN2 cost_VV0 about_RG 1.5_MC per_NNU21 cent_NNU22 of_IO Europe_NP1 's_GE total_JJ income_NN1 each_DD1 year_NNT1 ,_, merely_RR in_II31 terms_II32 of_II33 the_AT losses_NN2 incurred_VVN by_II traders_NN2 and_CC investors_NN2 when_CS they_PPHS2 change_VV0 currencies_NN2 ._. 
Even_RR more_RGR important_JJ ,_, the_AT prospect_NN1 of_IO a_AT1 single_JJ currency_NN1 would_VM eliminate_VVI an_AT1 ormous_JJ source_NN1 of_IO uncertainty_NN1 for_IF businesses_NN2 ._. 
It_PPH1 would_VM probably_RR unleash_VVI another_DD1 burst_NN1 of_IO investment_NN1 as_CSA firms_NN2 took_VVD advantage_NN1 of_IO opportunities_NN2 which_DDQ had_VHD hitherto_RT been_VBN regarded_VVN as_II too_RG risky_JJ ._. 
After_II all_DB ,_, businesses_NN2 can_VM insure_VVI against_II the_AT exchange_NN1 rate_NN1 risk_NN1 on_II particular_JJ deals_NN2 for_REX21 example_REX22 ,_, their_APPGE exports_NN2 to_II France_NP1 by_II accepting_VVG less_DAR sterling_NN1 today_RT in_II exchange_NN1 for_IF the_AT known_JJ future_JJ quantity_NN1 of_IO francs_NNU2 ._. 
But_CCB they_PPHS2 can_VM not_XX hedge_VVI investments_NN2 in_II the_AT same_DA way_NN1 (_( even_CS21 if_CS22 the_AT markets_NN2 looked_VVD far_RR beyond_II a_AT1 year_NNT1 or_CC so_RR ,_, which_DDQ they_PPHS2 do_VD0 not_XX )_) ._. 
Assume_VV0 ,_, for_REX21 example_REX22 ,_, that_DD1 Jaguar_NN1 had_VHD insured_VVN itself_PPX1 against_II a_AT1 fall_NN1 of_IO the_AT dollar_NNU1 by_II covering_VVG several_DA2 years_NNT2 of_IO earnings_NN2 ._. 
The_AT fall_NN1 of_IO the_AT dollar_NNU1 would_VM still_RR mean_VVI that_CST every_AT1 Jaguar_NN1 car_NN1 sold_VVN in_II the_AT US_NP1 was_VBDZ less_RGR profitable_JJ ,_, although_CS the_AT company_NN1 might_VM have_VHI made_VVN lots_PN of_IO money_NN1 on_II its_APPGE foreign_JJ exchange_NN1 transactions_NN2 ._. 
The_AT rational_JJ company_NN1 would_VM cash_VVI in_II its_APPGE profits_NN2 on_II the_AT speculation_NN1 and_CC still_RR cut_VV0 production_NN1 and_CC investment_NN1 as_CSA it_PPH1 was_VBDZ priced_VVN out_II21 of_II22 the_AT US_NP1 market_NN1 ._. 
Exchange_NN1 rate_NN1 uncertainty_NN1 is_VBZ thus_RR bound_VVNK to_TO reduce_VVI investment_NN1 ._. 
Some_DD idea_NN1 of_IO the_AT potential_JJ gains_NN2 from_II a_AT1 single_JJ currency_NN1 can_VM be_VBI had_VHN by_II looking_VVG at_II previous_JJ historical_JJ periods_NN2 when_RRQ people_NN really_RR believed_VVD that_DD1 exchange_NN1 rates_NN2 were_VBDR fixed_VVN ._. 
Mr_NNB Tam_NP1 Bayoumi_NP1 has_VHZ calculated_VVN the_AT average_JJ size_NN1 of_IO capital_NN1 flows_VVZ each_DD1 year_NNT1 in_II the_AT major_JJ economies_NN2 under_II the_AT Gold_NN1 Standard_NN1 from_II 1880_MC to_II 1913_MC ,_, and_CC has_VHZ shown_VVN that_CST they_PPHS2 were_VBDR much_RR larger_JJR than_CSN during_II the_AT post-war_JJ period_NN1 from_II 1965_MC to_II 1986_MC ._. 
Indeed_RR ,_, the_AT average_JJ flow_NN1 ,_, as_CSA a_AT1 percentage_NN1 of_IO GDP_NN1 ,_, for_IF eight_MC countries_NN2 in_II the_AT sample_NN1 before_II 1914_MC was_VBDZ 3.25_MC per_NNU21 cent_NNU22 a_AT1 year_NNT1 ;_; the_AT average_JJ flow_NN1 for_IF ten_MC countries_NN2 post-1965_JJ was_VBDZ only_RR 1_MC1 per_NNU21 cent_NNU22 (_( 2_MC )_) ._. 
The_AT advocates_NN2 of_IO the_AT Government_NN1 's_VBZ '_GE competing_JJ currencies_NN2 '_GE approach_NN1 suggest_VV0 that_CST many_DA2 of_IO these_DD2 gains_NN2 would_VM occur_VVI by_II merely_RR moving_VVG to_II a_AT1 '_GE hard_JJ '_GE EMS_NP1 in_II which_DDQ currencies_NN2 became_VVD progressively_RR more_RGR fixed_JJ (_( 3_MC )_) ._. 
However_RR ,_, the_AT evidence_NN1 so_RG far_RR suggests_VVZ that_CST it_PPH1 is_VBZ not_XX enough_RR to_TO persuade_VVI businesspeople_NN1 that_CST rates_NN2 will_VM really_RR be_VBI fixed_VVN forever_RT ._. 
Moreover_RR ,_, the_AT process_NN1 of_IO establishing_VVG credibility_NN1 is_VBZ long_RR drawn_VVN out_RP ._. 
The_AT French_NN1 ,_, despite_II an_AT1 exceptionally_RR tough_JJ policy_NN1 ,_, still_RR have_VH0 interest_NN1 rates_NN2 above_II the_AT German_JJ level_NN1 because_CS they_PPHS2 are_VBR unable_JK to_TO persuade_VVI the_AT markets_NN2 they_PPHS2 mean_VV0 what_DDQ they_PPHS2 say_VV0 when_RRQ they_PPHS2 rule_VV0 out_RP a_AT1 devaluation_NN1 ._. 
Nor_CC is_VBZ it_PPH1 sensible_JJ to_TO argue_VVI ,_, as_CSA the_AT Treasury_NN1 has_VHZ ,_, that_CST a_AT1 European_JJ system_NN1 of_IO central_JJ banks_NN2 in_II31 charge_II32 of_II33 a_AT1 single_JJ currency_NN1 might_VM prove_VVI more_RGR inflationary_JJ than_CSN a_AT1 fixed_JJ exchange_NN1 rate_NN1 system_NN1 where_CS each_DD1 monetary_JJ authority_NN1 competed_VVD to_TO provide_VVI a_AT1 stable_JJ benchmark_NN1 of_IO value_NN1 ._. 
It_PPH1 is_VBZ impossible_JJ to_TO make_VVI any_DD such_DA comparison_NN1 without_IW knowing_VVG what_DDQ the_AT institutional_JJ arrangements_NN2 of_IO the_AT system_NN1 would_VM be_VBI ._. 
If_CS the_AT system_NN1 's_GE charter_NN1 allowed_VVN for_IF a_AT1 bank_NN1 governor_NN1 to_TO be_VBI shot_VVN at_II dawn_NNT1 for_IF every_AT1 month_NNT1 the_AT inflation_NN1 rate_NN1 exceeded_VVD 1_MC1 per_NNU21 cent_NNU22 ,_, it_PPH1 might_VM prove_VVI even_RR more_RGR counter-inflationary_JJ than_CSN the_AT Bundesbank_NN1 ._. 
The_AT potential_JJ political_JJ and_CC economic_JJ gains_NN2 ensure_VV0 that_CST the_AT impetus_NN1 towards_II a_AT1 currency_NN1 union_NN1 in_II Europe_NP1 is_VBZ likely_JJ to_TO prove_VVI much_RR stronger_JJR today_RT than_CSN it_PPH1 did_VDD in_II the_AT turbulent_JJ Seventies_MC2 ._. 
And_CC that_DD1 ,_, in_II turn_NN1 ,_, is_VBZ likely_JJ to_TO feed_VVI back_RP on_II the_AT Government_NN1 in_II the_AT form_NN1 of_IO pressures_NN2 from_II the_AT most_RGT irresistible_JJ of_IO all_DB Tory_JJ constituencies_NN2 ,_, the_AT City_NN1 ._. 
After_II all_DB ,_, what_DDQ would_VM be_VBI more_RGR likely_JJ to_TO gain_VVI from_II a_AT1 brave_JJ new_JJ world_NN1 of_IO free_JJ capital_NN1 flows_NN2 than_CSN the_AT greatest_JJT financial_JJ centre_NN1 in_II Europe_NP1 ?_? 
This_DD1 week_NNT1 has_VHZ not_XX seen_VVN the_AT end_NN1 of_IO the_AT row_NN1 about_II Europe_NP1 in_II the_AT Conservative_JJ party_NN1 ,_, but_CCB merely_RR a_AT1 regrouping_NN1 of_IO forces_NN2 for_IF the_AT battle_NN1 still_RR to_II come._NNU (_( 1_MC1 )_) '_GE Europe_NP1 without_IW currency_NN1 barriers_NN2 '_GE Samuel_NP1 Brittan_NP1 ,_, Michael_NP1 Artis_NP1 ,_, The_AT Social_JJ Market_NN1 Foundation_NN1 ,_, London_NP1 ,_, 5.00._MC (_( 2_MC )_) '_GE Savings-investment_JJ correlations_NN2 :_: immobile_JJ capital_NN1 ,_, government_NN1 policy_NN1 or_CC endogenous_JJ behaviour_NN1 ?_? 
'_GE Tamim_NN1 Bayoumi_NN1 ,_, International_JJ Monetary_JJ Fund_NN1 working_NN1 paper_NN1 89/66._MF (_( 3_MC )_) An_AT1 evolutionary_JJ approach_NN1 to_II EMU_NN1 ,_, HM_NP1 Treasury_NN1 ,_, November_NPM1 1989_MC ._. 
MPs_NN2 begin_VV0 Jaguar_NN1 probe_NN1 ._. 
By_II Andrew_NP1 Cornelius_NP2 Industrial_JJ Editor_NN1 MPs_NN2 today_RT begin_VV0 investigating_VVG the_AT events_NN2 which_DDQ led_VVD to_II the_AT Government_NN1 dropping_VVG its_APPGE golden_JJ share_NN1 in_II Jaguar_NN1 and_CC the_AT subsequent_JJ deal_NN1 to_TO sell_VVI the_AT company_NN1 to_II Ford_NP1 ._. 
The_AT investigation_NN1 by_II the_AT all-party_JJ Trade_NN1 and_CC Industry_NN1 Committee_NN1 opens_VVZ as_RG Labour_JJ accuse_VV0 the_AT Government_NN1 of_IO '_GE wiping_VVG its_APPGE hands_NN2 of_IO the_AT future_NN1 of_IO Jaguar_NN1 ,_, its_APPGE workforce_NN1 and_CC the_AT West_NP1 Midlands_NP2 car_NN1 industry_NN1 ._. 
'_GE Mr_NNB Doug_NP1 Henderson_NP1 ,_, Labour_NN1 's_GE trade_NN1 and_CC industry_NN1 spokesman_NN1 ,_, made_VVD the_AT accusation_NN1 after_II discussing_VVG the_AT Jaguar_NN1 deal_NN1 with_IW Mr_NNB Derek_NP1 Barron_NP1 ,_, chairman_NN1 of_IO Ford_NN1 of_IO Britain_NP1 ._. 
He_PPHS1 said_VVD :_: '_" I_PPIS1 am_VBM astonished_JJ that_CST the_AT Government_NN1 ,_, which_DDQ hailed_VVD Jaguar_NN1 as_II the_AT flagship_NN1 of_IO the_AT privatisation_NN1 programme_NN1 ,_, has_VHZ now_RT wiped_VVN its_APPGE hands_NN2 of_IO the_AT future_NN1 of_IO the_AT company_NN1 ,_, its_APPGE workforce_NN1 and_CC the_AT West_NP1 Midlands_NP2 car_NN1 industry_NN1 ._. 
'_" He_PPHS1 had_VHD written_VVN to_II the_AT Office_NN1 of_IO Fair_JJ Trading_NN1 to_TO ask_VVI if_CSW ,_, in_II the_AT absence_NN1 of_IO any_DD interest_NN1 by_II the_AT Government_NN1 ,_, it_PPH1 would_VM seek_VVI formal_JJ assurances_NN2 from_II Ford_NP1 on_II future_JJ investment_NN1 levels_NN2 ,_, research_NN1 and_CC development_NN1 expenditure_NN1 ,_, training_NN1 ,_, component_NN1 sourcing_VVG and_CC the_AT development_NN1 of_IO the_AT dealer_NN1 network_NN1 ._. 
Jaguar_NN1 shareholders_NN2 will_VM be_VBI sent_VVN details_NN2 of_IO Ford_NP1 's_GE 1.6billion_FO takeover_NN1 terms_NN2 in_II a_AT1 circular_JJ due_JJ to_TO be_VBI posted_VVN today_RT to_II shareholders_NN2 in_II the_AT UK_NP1 and_CC also_RR the_AT US_NP1 ,_, where_CS a_AT1 simultaneous_JJ offer_NN1 is_VBZ to_TO be_VBI made_VVN to_II investors_NN2 holding_VVG Jaguar_NN1 shares_NN2 in_II the_AT form_NN1 of_IO American_JJ Depository_JJ Receipts_NN2 ._. 
They_PPHS2 will_VM be_VBI invited_VVN to_TO vote_VVI on_II the_AT Ford_NP1 takeover_NN1 terms_NN2 and_CC also_RR to_TO change_VVI the_AT company_NN1 's_GE articles_NN2 of_IO association_NN1 to_TO allow_VVI a_AT1 single_JJ investor_NN1 to_TO buy_VVI more_DAR than_CSN 15_MC per_NNU21 cent_NNU22 of_IO the_AT shares_NN2 at_II an_AT1 extraordinary_JJ meeting_NN1 scheduled_VVN for_IF December_NPM1 1_MC1 ._. 
The_AT Government_NN1 has_VHZ promised_VVN to_TO lift_VVI its_APPGE protective_JJ golden_JJ share_NN1 in_II the_AT business_NN1 ,_, which_DDQ would_VM otherwise_RR expire_VVI at_II the_AT end_NN1 of_IO 1990_MC ,_, if_CS 75_MC per_NNU21 cent_NNU22 of_IO Jaguar_NN1 shareholders_NN2 vote_VV0 in_II31 favour_II32 of_II33 this_DD1 change_NN1 ._. 
Brittan_NP1 attacks_VVZ Thatcher_NP1 on_II EMS_NP1 ._. 
By_II Larry_NP1 Elliott_NP1 Economics_NN1 Correspondent_NN1 BRITAIN_NP1 'S_GE senior_JJ EC_NP1 commissioner_NN1 Sir_NNB Leon_NP1 Brittan_NP1 upped_VVD the_AT stakes_NN2 in_II the_AT Cabinet_NN1 row_NN1 over_II Europe_NP1 last_MD night_NNT1 when_RRQ he_PPHS1 said_VVD the_AT UK_NP1 should_VM join_VVI the_AT exchange_NN1 rate_NN1 mechanism_NN1 of_IO the_AT European_JJ Monetary_JJ System_NN1 within_II the_AT next_MD few_DA2 months_NNT2 ._. 
In_II a_AT1 thinly_RR disguised_JJ attack_NN1 on_II the_AT Prime_JJ Minister_NN1 and_CC her_APPGE former_DA adviser_NN1 Professor_NNB Sir_NNB Alan_NP1 Walters_NP ,_, Sir_NNB Leon_NP1 said_VVD the_AT countries_NN2 which_DDQ had_VHD become_VVN full_JJ members_NN2 of_IO the_AT exchange_NN1 rate_NN1 mechanism_NN1 had_VHD enjoyed_VVN lower_JJR interest_NN1 rates_NN2 and_CC lower_JJR inflation_NN1 ._. 
'_" It_PPH1 really_RR is_VBZ a_RR21 bit_RR22 strange_JJ to_TO have_VHI been_VBN arguing_VVG the_AT merits_NN2 of_IO ERM_NN1 membership_NN1 in_II academic_JJ abstraction_NN1 ,_, when_CS the_AT practical_JJ effects_NN2 are_VBR there_RL for_IF all_DB to_TO see_VVI ._. 
Academics_NN2 ,_, like_II accountants_NN2 ,_, should_VM be_VBI on_II tap_NN1 ,_, and_CC not_XX on_II top_NN1 ._. 
'_GE In_II a_AT1 step-by-step_JJ assault_NN1 on_II the_AT softly-softly_RR approach_VV0 to_II Europe_NP1 being_VBG peddled_VVN by_II Downing_NP1 Street_NNL1 ,_, the_AT former_DA Conservative_JJ cabinet_NN1 minister_NN1 also_RR made_VVD it_PPH1 clear_JJ that_CST Mrs_NNB Thatcher_NP1 's_GE hard-line_JJ opposition_NN1 to_II the_AT concept_NN1 of_IO monetary_JJ union_NN1 with_IW the_AT other_JJ 11_MC EC_NP1 nations_NN2 was_VBDZ jeopardising_VVG the_AT chances_NN2 of_IO London_NP1 becoming_VVG the_AT base_NN1 for_IF a_AT1 European_JJ central_JJ bank_NN1 ._. 
'_" I_PPIS1 see_VV0 no_AT reasons_NN2 for_IF us_PPIO2 to_TO shy_VVI away_II21 from_II22 the_AT concept_NN1 of_IO a_AT1 Federal_JJ Reserve-type_NN1 of_IO European_JJ Central_JJ Bank_NN1 ,_, operating_VVG as_CSA in_II the_AT United_NP1 States_NP1 on_II a_AT1 decentralised_JJ basis_NN1 '_GE ,_, Sir_NNB Leon_NP1 said_VVD in_II a_AT1 lecture_NN1 in_II London_NP1 ._. 
'_" If_CSW it_PPH1 were_VBDR based_VVN in_II London_NP1 ,_, which_DDQ as_II Europe_NP1 's_GE financial_JJ powerhouse_NN1 would_VM be_VBI a_AT1 natural_JJ home_NN1 for_IF it_PPH1 ,_, the_AT benefits_NN2 to_II the_AT City_NN1 would_VM be_VBI enormous_JJ ._. 
But_CCB there_EX will_VM ,_, of_RR21 course_RR22 ,_, be_VBI no_AT chance_NN1 of_IO that_DD1 happening_NN1 unless_CS Britain_NP1 were_VBDR to_TO show_VVI its_APPGE enthusiasm_NN1 for_IF the_AT project_NN1 from_II the_AT outset_NN1 ._. 
'_GE Sir_NNB Leon_NP1 dismissed_VVD arguments_NN2 that_CST a_AT1 pan-European_JJ central_JJ bank_NN1 would_VM mean_VVI the_AT United_NP1 Kingdom_NP1 would_VM have_VHI to_TO surrender_VVI sovereignty_NN1 and_CC relinquish_VVI control_NN1 over_II monetary_JJ policy_NN1 ._. 
Commenting_VVG on_II the_AT increase_NN1 in_II UK_NP1 base_NN1 rates_NN2 to_II 15_MC per_NNU21 cent_NNU22 last_MD month_NNT1 ,_, he_PPHS1 added_VVD :_: '_" What_DDQ sort_NN1 of_IO expression_NN1 of_IO sovereignty_NN1 is_VBZ it_PPH1 to_TO have_VHI to_TO race_VVI after_II the_AT Bundesbank_NN1 within_II minutes_NNT2 of_IO its_APPGE unilaterally_RR deciding_VVG to_TO put_VVI up_RP interest_NN1 rates_NN2 ?_? 
'_" Would_VM n't_XX we_PPIS2 have_VHI more_DAR control_NN1 over_II our_APPGE affairs_NN2 if_CS the_AT Bank_NN1 of_IO England_NP1 had_VHD a_AT1 major_JJ say_VV0 in_II what_DDQ happened_VVD ,_, as_II part_NN1 of_IO a_AT1 decentralised_JJ European_JJ banking_NN1 authority_NN1 ?_? 
'_GE Sir_NNB Leon_NP1 said_VVD there_EX was_VBDZ no_AT need_NN1 for_IF the_AT United_NP1 Kingdom_NP1 to_TO wait_VVI for_IF its_APPGE inflation_NN1 rate_NN1 to_TO reach_VVI the_AT European_JJ average_NN1 before_II joining_VVG the_AT exchange_NN1 rate_NN1 mechanism_NN1 ,_, nor_CC to_TO hold_VVI back_RP until_CS the_AT further_JJR removal_NN1 of_IO capital_NN1 and_CC exchange_NN1 controls_VVZ next_MD summer_NNT1 ._. 
'_GE Joining_VVG the_AT ERM_NN1 is_VBZ not_XX a_AT1 prize_NN1 to_TO be_VBI given_VVN to_II our_APPGE partners_NN2 when_CS they_PPHS2 come_VV0 up_RP to_TO scratch_VVI ,_, but_CCB a_AT1 benefit_NN1 to_II ourselves_PPX2 if_CS only_RR we_PPIS2 would_VM take_VVI it_PPH1 ,_, '_" he_PPHS1 said_VVD ._. 
Hopes_NN2 rise_VV0 for_IF European_JJ compromise_NN1 deal_NN1 on_II greater_JJR telecoms_NN competition_NN1 ._. 
By_II John_NP1 Palmer_NP1 and_CC Peter_NP1 Large_JJ OUTLINES_NN2 of_IO a_AT1 compromise_NN1 deal_VV0 to_TO open_VVI Europe_NP1 's_GE telecoms_NN industry_NN1 to_II greater_JJR competition_NN1 emerged_VVD in_II Brussels_NP1 last_MD night_NNT1 after_II a_AT1 day-long_JJ meeting_NN1 of_IO EC_NP1 industry_NN1 ministers_NN2 ._. 
Earlier_RRR yesterday_RT ,_, the_AT UK_NP1 telecoms_NN authority_NN1 Oftel_NP1 announced_VVD it_PPH1 was_VBDZ launching_VVG an_AT1 inquiry_NN1 into_II how_RGQ effective_JJ competition_NN1 had_VHD been_VBN in_II improving_VVG Britain_NP1 's_GE phone_NN1 services_NN2 ._. 
Although_CS any_DD European_JJ agreement_NN1 will_VM not_XX be_VBI reached_VVN before_II next_MD month_NNT1 ,_, it_PPH1 looks_VVZ as_CS21 though_CS22 the_AT Commission_NN1 may_VM be_VBI winning_VVG its_APPGE battle_NN1 to_TO eliminate_VVI national_JJ protectionism_NN1 ._. 
Eight_MC of_IO the_AT 12_MC EC_NP1 governments_NN2 remain_VV0 opposed_VVN to_II attempts_NN2 by_II the_AT EC_NP1 Commissioner_NN1 for_IF competition_NN1 policy_NN1 ,_, Sir_NNB Leon_NP1 Brittan_NP1 ,_, to_TO impose_VVI greater_JJR competition_NN1 on_II national_JJ telecoms_NN authorities_NN2 ._. 
But_CCB they_PPHS2 agreed_VVD with_IW a_AT1 proposal_NN1 from_II the_AT French_JJ Government_NN1 ,_, which_DDQ is_VBZ currently_RR responsible_JJ for_IF the_AT EC_NP1 Council_NN1 of_IO Ministers_NN2 ,_, to_TO discuss_VVI an_AT1 amendment_NN1 which_DDQ would_VM allow_VVI the_AT Commission_NN1 to_TO grant_VVI temporary_JJ exemptions_NN2 to_II countries_NN2 facing_VVG problems_NN2 with_IW liberalisation_NN1 ._. 
The_AT Commission_NN1 aims_VVZ to_TO open_VVI up_RP the_AT 60billion_FO telecoms_NN industry_NN1 as_II part_NN1 of_IO the_AT 1992_MC single_JJ European_JJ market_NN1 ._. 
The_AT strategy_NN1 has_VHZ been_VBN to_TO abolish_VVI national_JJ protectionism_NN1 in_II the_AT sales_NN of_IO terminal_JJ equipment_NN1 ,_, to_TO lay_VVI down_RP one_MC1 set_NN1 of_IO technical_JJ standards_NN2 throughout_II the_AT EC_NP1 ,_, to_TO separate_VVI the_AT regulatory_JJ and_CC business_NN1 sides_NN2 of_IO the_AT telecoms_NN authorities_NN2 ,_, and_CC to_TO open_VVI public_JJ purchasing_NN1 of_IO equipment_NN1 to_II pan-European_JJ tender_JJ ._. 
The_AT British_JJ Industry_NN1 Minister_NN1 ,_, Mr_NNB Eric_NP1 Forth_NP1 ,_, said_VVD last_MD night_NNT1 that_CST the_AT Commission_NN1 's_GE latest_JJT proposals_NN2 were_VBDR '_GE a_AT1 well_NN1 balanced_JJ attempt_NN1 to_TO allay_VVI the_AT fears_NN2 of_IO some_DD delegations_NN2 about_II the_AT consequences_NN2 of_IO liberalisation_NN1 for_IF their_APPGE national_JJ suppliers_NN2 ._. 
'_GE Meanwhile_RR ,_, in_II Paris_NP1 ,_, GPT_NP1 ,_, the_AT 1.8billion_FO quasi-British_JJ telecoms_NN combine_VV0 ,_, was_VBDZ launching_VVG a_AT1 company_NN1 to_TO exploit_VVI the_AT liberalisation_NN1 of_IO the_AT French_JJ market_NN1 ._. 
Last_MD year_NNT1 the_AT trade_NN1 in_II telecoms_NN equipment_NN1 between_II Britain_NP1 and_CC France_NP1 barely_RR reached_VVN 20million_FO ,_, but_CCB today_RT GPT_NP1 alone_RR has_VHZ short-list_NN1 bids_VVZ for_IF 18million_FO of_IO French_JJ public_JJ contracts_NN2 ._. 
The_AT new_JJ subsidiary_NN1 ,_, GPTelecom_NP1 ,_, is_VBZ headed_VVN by_II Rupert_NP1 Soames_NP1 ,_, son_NN1 of_IO the_AT former_DA British_JJ Ambassador_NN1 to_II France_NP1 and_CC EC_NP1 vice-president_NN1 ._. 
Mr_NNB Soames_NP1 said_VVD that_CST whatever_DDQV the_AT state_NN1 of_IO liberalisation_NN1 elsewhere_RL in_II Europe_NP1 ,_, the_AT French_JJ market_NN1 was_VBDZ moving_VVG at_II a_AT1 pheneomenal_JJ rate_NN1 ._. 
GPT_NP1 was_VBDZ formed_VVN to_TO unite_VVI the_AT telecoms_NN businesses_NN2 of_IO GEC_NP1 and_CC Plessey_NP1 ,_, but_CCB as_II a_AT1 result_NN1 of_IO the_AT Plessey_NP1 takeover_NN1 it_PPH1 is_VBZ now_RT owned_VVN 60_MC per_NNU21 cent_NNU22 by_II GEC_NP1 and_CC 40_MC per_NNU21 cent_NNU22 by_II the_AT German_JJ group_NN1 ,_, Siemens_NP1 ._. 
Siemens_NP1 products_NN2 for_IF communications_NN2 networks_NN2 will_VM be_VBI sold_VVN in_II France_NP1 through_II GPTelecom_NP1 ,_, and_CC Mr_NNB Soames_NP1 said_VVD the_AT agreement_NN1 was_VBDZ likely_JJ to_TO be_VBI widened_VVN so_CS21 that_CS22 all_DB telecoms_NN products_NN2 of_IO Siemens_NP1 and_CC GPT_NP1 would_VM be_VBI marketed_VVN in_II France_NP1 through_II the_AT single_JJ channel_NN1 ._. 
The_AT new_JJ look_NN1 at_II the_AT effectiveness_NN1 of_IO British_JJ liberalisation_NN1 was_VBDZ announced_VVN by_II Sir_NNB Bryan_NP1 Carsberg_NP1 ,_, head_NN1 of_IO Oftel_NP1 ,_, at_II the_AT annual_JJ meeting_NN1 of_IO the_AT Telecoms_NN Users_NN2 '_GE Association_NN1 ._. 
He_PPHS1 said_VVD that_CST after_II 3_MC years_NNT2 of_IO competition_NN1 between_II British_JJ Telecom_NP1 and_CC the_AT Cable_NN1 and_CC Wireless_NN1 subsidiary_NN1 ,_, Mercury_NP1 Communications_NN2 ,_, it_PPH1 was_VBDZ time_NNT1 to_TO survey_VVI customers_NN2 '_GE experience_NN1 and_CC ,_, if_CS necessary_JJ ,_, '_GE identify_VV0 practices_NN2 which_DDQ might_VM still_RR be_VBI inhibiting_VVG competition_NN1 '_GE ._. 
He_PPHS1 needed_VVD to_TO be_VBI sure_JJ that_CST current_JJ arrangements_NN2 were_VBDR working_VVG as_II31 well_II32 as_II33 possible_JJ before_II the_AT Government_NN1 's_GE review_NN1 next_MD year_NNT1 of_IO whether_CSW competition_NN1 in_II basic_JJ telecoms_NN should_VM be_VBI extended_VVN beyond_II the_AT two_MC companies_NN2 ._. 
Sir_NNB Bryan_NP1 said_VVD he_PPHS1 had_VHD received_VVN '_" some_DD indications_NN2 '_GE that_DD1 BT_NP1 's_GE position_NN1 as_II a_AT1 designated_JJ maintainer_NN1 of_IO company_NN1 phone_NN1 exchanges_NN2 could_VM '_GE inhibit_NN1 progress_NN1 for_IF prospective_JJ Mercury_NN1 customers_NN2 '_GE ._. 
He_PPHS1 was_VBDZ also_RR considering_VVG whether_CSW the_AT code_NN1 of_IO practice_NN1 which_DDQ governs_VVZ the_AT quality_NN1 of_IO connections_NN2 between_II private_JJ lines_NN2 and_CC the_AT public_JJ phone_NN1 network_NN1 should_VM be_VBI advisory_JJ rather_II21 than_II22 mandatory_JJ ._. 
'_" It_PPH1 seems_VVZ to_II me_PPIO1 to_TO be_VBI inconsistent_JJ with_IW the_AT spirit_NN1 of_IO liberalisation_NN1 to_TO have_VHI a_AT1 mandatory_JJ code_NN1 that_CST necessitates_VVZ a_AT1 cumbersome_JJ and_CC bureaucratic_JJ certification_NN1 process_NN1 ._. 
'_GE BAT_NP1 drops_VVZ its_APPGE French_JJ bankers_NN2 ._. 
By_II Financial_NP1 staff_VV0 THE_AT tobacco-to-insurance_JJ giant_NN1 ,_, BAT_NP1 Industries_NN2 ,_, yesterday_RT sacked_VVD one_MC1 of_IO its_APPGE big_JJ bankers_NN2 ,_, Paribas_NP1 ,_, after_CS the_AT French_JJ finance_NN1 group_NN1 's_GE decision_NN1 to_II back_NN1 Sir_NNB James_NP1 Goldsmith_NN1 's_GE hostile_JJ 13.4billion_FO takeover_NN1 bid_NN1 ._. 
BAT_NP1 ,_, which_DDQ had_VHD refused_VVN to_TO take_VVI action_NN1 against_II its_APPGE main_JJ French_JJ financial_JJ advisers_NN2 at_II the_AT time_NNT1 Sir_NNB James_NP1 's_GE assault_NN1 was_VBDZ mounted_VVN ,_, has_VHZ decided_VVN to_TO appoint_VVI Credit_NN1 Lyonnais_NP1 ._. 
The_AT large_JJ UK-based_JJ group_NN1 retains_VVZ roughly_RR 70_MC international_JJ financial_JJ bankers_NN2 and_CC Paribas_NP1 had_VHD acted_VVN as_CSA BAT_NP1 's_GE senior_JJ adviser_NN1 in_II France_NP1 when_RRQ the_AT company_NN1 joined_VVD the_AT Paris_NP1 bourse_NN1 ._. 
BAT_NP1 described_VVD Paribas_NP1 's_GE actions_NN2 as_II '_GE pretty_JJ fickle_JJ ._. 
'_GE The_AT French_JJ bank_NN1 is_VBZ the_AT latest_JJT in_II a_AT1 string_NN1 of_IO financial_JJ advisers_NN2 to_TO be_VBI sacked_VVN by_II British_JJ groups_NN2 after_II backing_VVG hostile_JJ takeover_NN1 bids_NN2 ._. 
Paribas_NP1 had_VHD helped_VVN Axa_NP1 Midi_NP1 in_II plans_NN2 to_TO buy_VVI BAT_NP1 's_GE Farmers_NN2 unit_NN1 in_II America_NP1 ._. 
BAT_NP1 is_VBZ in_II the_AT process_NN1 of_IO a_AT1 restructuring_NN1 programme_NN1 which_DDQ involves_VVZ selling_VVG its_APPGE US_NP1 retailing_NN1 operations_NN2 ,_, its_APPGE paper_NN1 businesses_NN2 and_CC other_JJ interests_NN2 ._. 
Perrier_NN1 in_II 250m_NNU soft_JJ drink_NN1 sale_NN1 ._. 
By_II Financial_JJ staff_NN PERRIER_NN1 ,_, the_AT French_JJ group_NN1 which_DDQ has_VHZ come_VVN to_TO epitomise_VVI '_GE designer_NN1 '_GE water_NN1 ,_, has_VHZ put_VVN its_APPGE soft_JJ drinks_NN2 division_NN1 up_RP for_IF sale_NN1 for_IF around_II 250million_FO ._. 
The_AT move_NN1 follows_VVZ the_AT group_NN1 's_GE decision_NN1 to_TO concentrate_VVI on_II its_APPGE most_RGT profitable_JJ business_NN1 ,_, mineral_NN1 water_NN1 ,_, which_DDQ it_PPH1 says_VVZ is_VBZ expanding_JJ '_GE dramatically_RR '_GE throughout_II the_AT world_NN1 ._. 
Cadbury_NP1 has_VHZ been_VBN tipped_VVN to_TO buy_VVI Perrier_NP1 's_GE soft_JJ drinks_NN2 business_NN1 ,_, which_DDQ includes_VVZ Pchitt_NP1 lemonade_NN1 ,_, Bali_JJ syrup_NN1 ,_, and_CC the_AT bottling_NN1 of_IO Gigi_NP1 lemonade_NN1 ._. 
Cadbury_NP1 ,_, which_DDQ declined_VVD to_TO comment_VVI on_II speculation_NN1 ,_, recently_RR acquired_VVD the_AT Gigi_NP1 brand_NN1 name_NN1 when_CS it_PPH1 bought_VVD Crush_NN1 from_II Procter&amp;Gamble_FO ,_, but_CCB it_PPH1 is_VBZ understood_VVN it_PPH1 would_VM be_VBI reluctant_JJ to_TO pay_VVI much_DA1 more_DAR than_CSN 150million_FO for_IF the_AT Perrier_NN1 business_NN1 ._. 
An_AT1 extra_JJ impetus_NN1 for_IF the_AT disposal_NN1 came_VVD at_II the_AT start_NN1 of_IO the_AT week_NNT1 when_RRQ Pepsi_NP1 decided_VVD to_TO end_VVI its_APPGE franchise_NN1 relationship_NN1 with_IW Perrier_NP1 ,_, citing_VVG poor_JJ sales_NN performance_NN1 ._. 
Some_DD interpreted_VVD Pepsi_NP1 's_GE decision_NN1 as_II a_AT1 prelude_NN1 to_II a_AT1 bid_NN1 for_IF Perrier_NP1 's_GE soft_JJ drinks_NN2 business_NN1 ,_, which_DDQ analysts_NN2 predicted_VVN might_VM also_RR attract_VVI offers_NN2 from_II Coca-Cola_NP1 ,_, Suntory_NP1 of_IO Japan_NP1 ,_, or_CC Guinness_NP1 through_II its_APPGE LVMH_NP1 connection_NN1 ._. 
Marcel_VV0 Richard_NP1 ,_, Perrier_NP1 's_GE financial_JJ director_NN1 ,_, declined_VVD to_TO mention_VVI the_AT impact_NN1 of_IO Pepsi_NP1 's_GE decision_NN1 ._. 
But_CCB it_PPH1 is_VBZ understood_VVN that_CST Pepsi_NP1 's_GE market_NN1 share_NN1 in_II France_NP1 for_IF cola_NN1 drinks_NN2 dropped_VVN from_II 18_MC per_NNU21 cent_NNU22 in_II the_AT early_JJ 1980s_MC2 to_II roughly_RR 10_MC per_NNU21 cent_NNU22 despite_II an_AT1 expanding_JJ market_NN1 ._. 
For_IF Perrier_NP1 the_AT sale_NN1 of_IO soft_JJ drinks_NN2 have_VH0 become_VVN vastly_RR less_RGR important_JJ than_CSN the_AT revenue_NN1 from_II bottled_JJ water_NN1 ._. 
Soft_JJ drink_NN1 sales_NN last_MD year_NNT1 were_VBDR 115million_FO ,_, less_RRR than_CSN a_AT1 tenth_MD of_IO the_AT group_NN1 's_GE revenue_NN1 ._. 
Much_DA1 of_IO the_AT upheaval_NN1 in_II the_AT world_NN1 's_GE soft_JJ drinks_NN2 markets_NN2 has_VHZ been_VBN prompted_VVN by_II the_AT US_NP1 giants_NN2 ,_, Pepsi_NP1 and_CC Coke_NN1 ,_, which_DDQ are_VBR now_RT looking_VVG aggressively_RR for_IF expansion_NN1 in_II Europe_NP1 ._. 
Coca-Cola_NP1 is_VBZ said_VVN to_TO control_VVI around_RG 80_MC per_NNU21 cent_NNU22 of_IO the_AT French_JJ cola_NN1 market_NN1 and_CC Pepsi_NP1 is_VBZ keen_JJ to_TO strike_VVI back_RP ._. 
Polly_NP1 Peck_NP1 sells_VVZ textile_NN1 arm_NN1 to_II Hong_NP1 Kong_NP1 company_NN1 ._. 
POLLY_NP1 PECK_NP1 is_VBZ selling_VVG its_APPGE barely_RR profitable_JJ textile_NN1 subsidiary_NN1 ,_, Polly_NP1 Peck_NP1 Far_JJ East_ND1 ,_, to_II a_AT1 Hong_NP1 Kong-controlled_JJ British_JJ Virgin_NP1 Islands_NNL2 registered_JJ company_NN1 in_II preference_NN1 to_II the_AT privatisation_NN1 proposals_NN2 announced_VVD a_AT1 month_NNT1 ago_RA ,_, writes_VVZ Robin_NP1 Stoddart_NP1 ._. 
After_CS the_AT repurchase_NN1 of_IO PPFE_NP1 's_GE Portuguese_JJ offshoot_NN1 and_CC a_AT1 United_NP1 States_NP1 marketing_NN1 business_NN1 ,_, along_II21 with_II22 its_APPGE electronics_NN1 section_NN1 ,_, 27.5million_FO will_VM be_VBI realised_VVN from_II the_AT deal_NN1 ,_, including_II a_AT1 special_JJ dividend_NN1 ._. 
It_PPH1 will_VM cover_VVI a_AT1 further_JJR part_NN1 of_IO the_AT purchase_NN1 costs_NN2 of_IO Polly_NP1 Peck_NP1 's_GE recent_JJ acquisitions_NN2 of_IO Del_NP1 Monte_NP1 ,_, the_AT American_JJ fresh_JJ fruit_NN distributor_NN1 and_CC Sansui_JJ Electric_NN1 of_IO Japan_NP1 ,_, on_II31 top_II32 of_II33 the_AT proceeds_NN2 of_IO the_AT recent_JJ rights_NN2 issue_VV0 ._. 
Brave_JJ Dragon_NN1 ,_, PPFE_NP1 's_GE buyer_NN1 is_VBZ owned_VVN by_II Wing_NN1 Tai_NN1 Exporters_NN2 in_II partnership_NN1 with_IW Sung_NP1 Hung_VVD Kai_NP1 ,_, the_AT Hong_NP1 Kong_NP1 property_NN1 giant_NN1 ._. 
It_PPH1 will_VM offer_VVI holders_NN2 of_IO the_AT outstanding_JJ 26_MC per_NNU21 cent_NNU22 of_IO the_AT PPFE_NN1 capital_NN1 the_AT same_DA terms_NN2 and_CC also_RR make_VV0 a_AT1 fractionally_RR higher_JJR cash_NN1 offer_NN1 than_CSN under_II the_AT privatisation_NN1 proposal_NN1 to_II the_AT larger_JJR number_NN1 of_IO warrantholders_NN2 ._. 
However_RR ,_, it_PPH1 intends_VVZ to_TO retain_VVI the_AT Hong_NP1 Kong_NP1 share_NN1 quotations_NN2 ._. 
A_AT1 special_JJ dividend_NN1 ,_, worth_II 17_MC million_NNO to_II Polly_NP1 Peck_NP1 ,_, is_VBZ being_VBG paid_VVN before_II the_AT change_NN1 of_IO ownership_NN1 ._. 
The_AT US_NP1 ,_, Portuguese_JJ and_CC Shell_VV0 Electric_JJ subsidiary_JJ repurchases_NN2 are_VBR valued_VVN at_II 10.8million_FO ._. 
After_CS the_AT offer_NN1 closes_VVZ ,_, Mr_NNB Asil_NP1 Nadir_NP1 and_CC other_JJ Polly_NP1 Peck_NP1 directors_NN2 will_VM resign_VVI from_II PPFE_NP1 ,_, though_CS if_CS it_PPH1 is_VBZ not_XX unconditional_JJ by_II December_NPM1 14_MC ,_, the_AT privatisation_NN1 offer_NN1 ,_, worth_II 6_MC per_NNU21 cent_NNU22 less_RRR ,_, will_VM go_VVI ahead_RL ._. 
Polly_NP1 Peck_NP1 raised_VVD half_DB of_IO the_AT 560million_FO Del_NP1 Monte_NP1 Fresh_JJ Fruit_NN purchase_VV0 cost_NN1 through_II its_APPGE three-for-seven_MC rights_NN2 issue_VV0 ,_, but_CCB it_PPH1 has_VHZ just_RR paid_VVN 69million_FO for_IF control_NN1 of_IO Sansui_NN1 ._. 
Under_II the_AT privatisation_NN1 proposal_NN1 it_PPH1 was_VBDZ offering_VVG almost_RR 14million_FO for_IF the_AT rest_NN1 of_IO PPFE_NP1 ,_, which_DDQ had_VHD made_VVN little_DA1 progress_NN1 since_CS the_AT Hong_NP1 Kong_NP1 flotation_NN1 ._. 
MP_NN1 claims_VVZ that_CST Met_VVD fraud_NN1 squad_NN1 leaked_VVD Fraser_NP1 report_NN1 to_II Lonrho_NP1 ._. 
By_II Daniel_NP1 John_NP1 THE_AT copy_NN1 of_IO the_AT confidential_JJ Department_NN1 of_IO Trade_NN1 and_CC Industry_NN1 report_NN1 into_II the_AT House_NN1 of_IO Fraser_NP1 takeover_NN1 which_DDQ was_VBDZ passed_VVN to_II the_AT Observer_NN1 newspaper_NN1 was_VBDZ leaked_VVN by_II officers_NN2 of_IO the_AT Metropolitan_JJ Police_NN2 fraud_NN1 squad_NN1 ,_, it_PPH1 was_VBDZ alleged_VVN yesterday_RT ._. 
According_II21 to_II22 a_AT1 House_NN1 of_IO Commons_NP motion_NN1 ,_, the_AT leak_NN1 was_VBDZ traced_VVN through_II a_AT1 system_NN1 of_IO numbered_JJ copies_NN2 of_IO the_AT 752-page_JJ document_NN1 ,_, which_DDQ was_VBDZ sent_VVN out_RP to_II the_AT authorities_NN2 investigating_VVG possible_JJ criminal_JJ proceedings_NN2 resulting_VVG from_II the_AT report_NN1 's_GE conclusions_NN2 ._. 
Mr_NNB Dale_NP1 Campbell-Savours_VVZ ,_, Labour_JJ MP_NN1 for_IF Workington_NP1 ,_, claims_VVZ that_CST the_AT leak_NN1 inquiry_NN1 ,_, which_DDQ followed_VVD publication_NN1 of_IO parts_NN2 of_IO the_AT report_NN1 in_II a_AT1 special_JJ edition_NN1 of_IO the_AT Observer_NN1 ,_, discovered_VVD that_CST copy_VV0 26_MC had_VHD been_VBN sent_VVN to_II the_AT paper_NN1 's_GE owners_NN2 ,_, Lonrho_NP1 ._. 
It_PPH1 is_VBZ the_AT first_MD time_NNT1 the_AT fraud_NN1 squad_NN1 has_VHZ been_VBN directly_RR accused_VVN of_IO leaking_VVG the_AT report_NN1 ._. 
The_AT MP_NN1 's_GE motion_NN1 and_CC three_MC parliamentary_JJ questions_NN2 directed_VVN at_II the_AT Attorney-General_NN1 ,_, Sir_NNB Patrick_NP1 Mayhew_NP1 ,_, allege_VV0 the_AT copy_NN1 was_VBDZ given_VVN to_II the_AT fraud_NN1 squad_NN1 to_TO help_VVI its_APPGE investigations_NN2 into_II the_AT successful_JJ 615million_FO bid_VV0 for_IF Fraser_NP1 by_II the_AT Fayed_JJ brothers_NN2 in_II 1985_MC ._. 
Two_MC fraud_NN1 squad_NN1 officers_NN2 ,_, Detective_NN1 Inspector_NNB Graham_NP1 Gooch_NP1 and_CC Detective_NNB Sergeant_NNB Ken_NP1 Morgan_NP1 ,_, were_VBDR sent_VVN out_RP to_II Egypt_NP1 as_II part_NN1 of_IO the_AT investigation_NN1 being_VBG conducted_VVN alongside_II an_AT1 investigation_NN1 by_II the_AT Serious_JJ Fraud_NN1 Office_NN1 ._. 
However_RR ,_, they_PPHS2 were_VBDR later_RRR taken_VVN off_II the_AT case_NN1 and_CC transferred_VVN to_II other_JJ duties_NN2 ._. 
Mr_NNB Campbell-Savours_VVZ alleges_VVZ that_CST senior_JJ Scotland_NP1 Yard_NN1 officers_NN2 then_RT decided_VVD the_AT team_NN1 should_VM not_XX have_VHI any_DD further_JJR contact_NN1 with_IW the_AT Observer_NN1 or_CC Lonrho_NP1 ._. 
But_CCB his_APPGE motion_NN1 adds_VVZ :_: '_" This_DD1 House_NN1 therefore_RR questions_NN2 why_RRQ an_AT1 officer_NN1 chose_VVD to_TO ignore_VVI that_DD1 instruction_NN1 by_II meeting_VVG the_AT City_NN1 editor_NN1 of_IO the_AT Observer_NN1 at_RR21 least_RR22 twice_RR including_VVG on_II the_AT eve_NNT1 of_IO publication_NN1 of_IO the_AT special_JJ edition_NN1 '_GE ._. 
The_AT motion_NN1 goes_VVZ on_RP to_TO say_VVI that_CST it_PPH1 draws_VVZ the_AT '_GE natural_JJ and_CC disturbing_JJ inference_NN1 '_GE that_CST the_AT meetings_NN2 and_CC copy_VV0 number_NN1 26_MC were_VBDR linked_VVN ._. 
And_CC Mr_NNB Campbell-Savours_VVZ called_VVN on_II the_AT Lonrho_NN1 chief_NN1 executive_NN1 ,_, Mr_NNB Tiny_JJ Rowland_NP1 ,_, to_TO relinquish_VVI control_NN1 over_II the_AT Observer_NN1 ._. 
The_AT questions_NN2 ,_, listed_VVN for_IF today_RT in_II the_AT Commons_NP order_NN1 paper_NN1 ,_, ask_VV0 whether_CSW the_AT fraud_NN1 squad_NN1 had_VHD the_AT copy_NN1 ,_, if_CS any_DD disciplinary_JJ action_NN1 had_VHD been_VBN taken_VVN against_II any_DD officer_NN1 and_CC whether_CSW criminal_JJ inquiries_NN2 are_VBR being_VBG pursued_VVN ._. 
The_AT SFO_NP1 refused_VVD comment_NN1 on_II the_AT MP_NN1 's_GE allegations_NN2 or_CC on_II when_RRQ it_PPH1 will_VM decide_VVI if_CSW any_DD prosecutions_NN2 should_VM follow_VVI from_II the_AT Fraser_NP1 takeover_NN1 ._. 
However_RR ,_, a_AT1 decision_NN1 is_VBZ believed_VVN to_TO be_VBI imminient_JJ and_CC reports_NN2 suggest_VV0 the_AT SFO_NP1 will_VM take_VVI no_AT further_JJR action_NN1 ._. 
This_DD1 would_VM allow_VVI the_AT report_NN1 to_TO be_VBI published_VVN as_II the_AT Government_NN1 has_VHZ promised_VVN ._. 
A_ZZ1 Scotland_NP1 Yard_NN1 spokesman_NN1 said_VVD no_UH disciplinary_JJ action_NN1 had_VHD been_VBN taken_VVN against_II any_DD officers_NN2 and_CC that_CST nobody_PN1 had_VHD been_VBN suspended_VVN ._. 
He_PPHS1 said_VVD Scotland_NP1 Yard_NN1 could_VM not_XX pre-empt_VVI any_DD Commons_NN2 questions_NN2 until_CS they_PPHS2 had_VHD been_VBN answered_VVN ._. 
Mr_NNB Campbell-Savours_VVZ last_MD night_NNT1 withdrew_VVD his_APPGE questions_NN2 on_II procedural_JJ grounds_NN2 but_CCB said_VVD he_PPHS1 will_VM retable_JJ them_PPHO2 ._. 
The_AT Attorney_NN1 General_JJ 's_GE office_NN1 said_VVD :_: '_" They_PPHS2 will_VM be_VBI answered_VVN by_II the_AT appropriate_JJ minister_NN1 '_GE ._. 
Publication_NN1 of_IO the_AT report_NN1 by_II the_AT Observer_NN1 in_II March_NPM1 this_DD1 year_NNT1 caused_VVD a_AT1 furore_NN1 and_CC prompted_VVD a_AT1 special_JJ committee_NN1 of_IO Law_NN1 Lords_NN2 to_TO decide_VVI whether_CSW Lonrho_NP1 had_VHD been_VBN guilty_JJ of_IO contempt_NN1 of_IO court_NN1 before_II its_APPGE appeal_NN1 to_II the_AT House_NN1 of_IO Lords_NP on_II the_AT Fraser_NP1 bid_NN1 ._. 
They_PPHS2 concluded_VVD the_AT company_NN1 ,_, which_DDQ has_VHZ bitterly_RR contested_VVN the_AT Fayeds_NP1 ownership_NN1 of_IO the_AT stores_NN2 group_NN1 ,_, had_VHD '_" taken_VVN the_AT law_NN1 into_II own_DA hands_NN2 '_GE but_CCB cleared_VVD it_PPH1 of_IO contempt_NN1 ._. 
Lonrho_NN1 last_MD night_NNT1 reiterated_VVD its_APPGE claim_NN1 that_CST it_PPH1 had_VHD received_VVN the_AT copy_NN1 of_IO the_AT report_NN1 in_II a_AT1 brown_JJ paper_NN1 envelope_NN1 ._. 
'_" We_PPIS2 have_VH0 no_AT knowledge_NN1 of_IO where_RRQ it_PPH1 came_VVD from_II ,_, '_GE said_VVD a_AT1 spokesman_NN1 ._. 
